- This topic is empty.
November 1, 2011 at 12:06 am #975676dkunduMember
- Total posts: 4
We four friends like to open some kind of account to make periodic deposit to save money and later use that money to start business. How should we start? Any advice?
Do we need to register business name and get ABN?
Do we need solicitor to produce partnership document?
What kind of bank account we can use for max saving interest? Any feedback will be great help. Thanks in advance.November 1, 2011 at 3:34 am #1075831MyGreatIdeaMember
- Total posts: 2,278
My advice would be to save separately – relationships and priorities change over time and could be very different by the time you’re ready to start a business.
WendyNovember 1, 2011 at 4:39 am #1075832dextereugenioMember
- Total posts: 536
i would have to echo “couple it’s” words
be very very wary of partnerships.
ive looked after enough small businesses to learn that it takes a special breed of 2 people for them to work and last. if it was an “out of 10 scenario” i would guess about a 2 or 3 work.
personally, i dipped my toe in the partnership waters and came up as part of the 7-8 that failed.
its a very hard slog and im sure there are countless threads on this in this forum.
if you still want to do it, each of you get some self discipline. have a target of X dollars each and open your own accounts to dump into. Once you’ve reached it, then decide what you want to do.November 1, 2011 at 4:48 am #1075833SamanthaEMember
- Total posts: 235
I am with couple it and gossipism on this one.
For an “idea” there would be too much legal paperwork to want to save together.
You would really need to have a formal agreement on how much everyone is required to put in and how often this is, the ramifications of not putting in, the responsibilities of the account operation, the tax advice needed on how you would distribute the interest and the tax payable, how you distribute if your idea does not go ahead…..and I could go on forever
As couple it said, save separately, and when ready to form the business, make sure that you have all the legalities sorted then.November 13, 2011 at 11:33 pm #1075834Trevor MonaghanMember
- Total posts: 84
I agree 100% with previous comments. Most partnerships with only 2 people end in misery. The odds of having a successful 4 way partnership are remote, especially when you don’t yet know the type of venture you will be pursuing and what money or effort will be required by each partner.
Keep your money separate with a goal of how much money you will each need. This will give you time to work together to decide what opportunity to pursue and will also test the relationships and discipline.
Not saying it won’t work, I hope it does, but know the risks and manage them.November 14, 2011 at 12:15 am #1075835CallaughanPartnersMember
- Total posts: 37
The main issue with Partnerships are partners are joinly and severally liable fot all debts and liabilities. Going into a partnership with unrelated persons can be risky as you are unaware of their business history and their current risk situation and debt levels.
There are better ways to structure 4 partners wanting to go into business.
Callaughan Partners – Accountants & Business Advisors
1300 300 997
- You must be logged in to reply to this topic.