Home – New Forums Starting your journey Using personal funds in a partnership Reply To: Using personal funds in a partnership

James Millar
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julzabc, post: 246368, member: 95104 wrote:
I thought about making baby-steps first before jumping feet first into a partnership. I stumbled across ‘joint ventures’. I’ve heard about them before, but had no idea what they were.

As I understand, we could register a business name and operate with two separate ABNs. We could still work together as partners per se, but not in the legal sense of a ‘partnership’ entity. If correct, does this mean we would both be liable/accountable for our own individual expenses? If that’s the case, then that would make life easier if we were to part ways.

We wouldn’t have to worry about who owns what. Or how to divide assets etc. We still continue to do our own personal tax returns as per usual. No need to deregister a partnership. Close bank accounts. See accountants/lawyers to deteremine shares in owner equity for each partner etc.

We could simple keep the business name and domain name and keep our details on the website as is. Then it’ll be up to the potential customer to call whoever they wanted.

If that can be done under a joint venture, then, if say partner A gets a client and wants me to process some paperwork. I’d simply invoice partner A for my time/share. Or, partner A could say, I’m busy with another job. Partner A and Partner B agree that, partner A does 70% of the particular job and partner B does 30%. Partner B then invoices partner A for 30% of their cut.

Would that work?

You could look at a JV but that is more like operating two independent businesses. If that serves your business plan then its worth considering.

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