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  1. #1
    More Cheesier Than Ever Cheesehead's Avatar
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    Joint Venture - Best Approach?
    My father-in-law wants to go in on a joint website with me. I will do design and setup/technical and he will do the day-to-day blog moderation that I can't do right now. So, this can not be a sole-proprietorship.

    We need this to be a business. Should we incorporate?

    Can I register the domain name in my name or does it have to be in the business name?

    Any other suggestions anybody has will be greatly appreciated.

    Thanx
    This World is Not My Home
    We're gonna go inside, we're gonna go outside, inside and outside. . . And then we're gonna go go go and we're not gonna stop til we get across that goalline! Quotes from the movie Rudy, 1993

  2. #2
    ABW Ambassador PatrickAllmond's Avatar
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    Where/what is the business aspect or connection of this website? I don't see anything yet that requires a formal relationship.
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  3. #3
    Moderator MichaelColey's Avatar
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    If you're going to do it together, you could do it either as a partnership or a corporation. There's different benefits and reporting for each, and you'd probably need to talk to an accountant.

    Another option is to let him own the company and just charge him for the technical setup that you do. You could let him pay you your fees over time if necessary.
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  4. #4
    More Cheesier Than Ever Cheesehead's Avatar
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    Quote Originally Posted by patrick24601
    Where/what is the business aspect or connection of this website? I don't see anything yet that requires a formal relationship.
    The business aspect would be in payment for advertising (for example AdSense). The payment would be made to a person. I suppose that person could then hire the other person and deduct the cost as an expense.

    Yes, I do believe I will be discussing this with my accountant.
    This World is Not My Home
    We're gonna go inside, we're gonna go outside, inside and outside. . . And then we're gonna go go go and we're not gonna stop til we get across that goalline! Quotes from the movie Rudy, 1993

  5. #5
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    Are you incorporated? If so, have him form an LLC and then you can form a new company between the two corporations. It will simplify some accounting if you do payroll etc. You definetly need a legal binding agreement. what if the site becomes the next yahoo and you don't and you divorce your wife? What happens if your father -in-law gets drunk and libels companies for a site with you showing as the owner? All kinds of things can happen, make sure you are covered.

    Always go into a partnership thinking this will be the next biggest thing ever, and this person i am doing this with is my biggest enemy. You don't act that way of course, but make sure the paperwork is such.

    And of course, ask your accountant, but it is always good to have some ideas to prod them with.

    Chet

  6. #6
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    What happens if the father-in-law just stops maintaining or working on the site/blog altogether?

  7. #7
    What's the word? Rhia7's Avatar
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    Read information from Nolo, because that's the type of info your accountant will give you.

    Go to http://www.nolo.com/index.cfm

    Click on "Business and Human Resources" and go on from there
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  8. #8
    Affiliate/AM Moonlighter dflsports's Avatar
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    I'd look into the partnership and it's very easy to set up. When you get into corporations, a lot more paperwork and then aother issues come around that might be a hassle. The acountant is the best idea a lawyer is a big waste of money. In my opinion starting as a partnership, keeping things simple at first is easiest and a lot less red tape.

  9. #9
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    As others have said, definitely talk with an accountant as they will have the correct advise for your situation.

  10. #10
    More Cheesier Than Ever Cheesehead's Avatar
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    Quote Originally Posted by Taylor
    As others have said, definitely talk with an accountant as they will have the correct advise for your situation.
    Thanks for that reminder! I will be taking my tax info in tomorrow and sitting down with my accountant.
    This World is Not My Home
    We're gonna go inside, we're gonna go outside, inside and outside. . . And then we're gonna go go go and we're not gonna stop til we get across that goalline! Quotes from the movie Rudy, 1993

  11. #11
    More Cheesier Than Ever Cheesehead's Avatar
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    My accountant said it would not be a good idea to pay the other person. I would be then employing him and then would have to pay SS and other withholdings. On the other hand, if I pay the all the tax and give "gifts", then my Father-in-law would by law have to declare the earnings and we would be taxed twice.

    I am looking into placing 2 adsense ads with our respective codes on each page. Waiting to hear from G. We could then maintain our sole proprietorships.

    Otherwise, a partnership is our option.
    This World is Not My Home
    We're gonna go inside, we're gonna go outside, inside and outside. . . And then we're gonna go go go and we're not gonna stop til we get across that goalline! Quotes from the movie Rudy, 1993

  12. #12
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    Yeah, you do not want to have to do payroll taxes unless you have to. The paperwork and book keeping is a nightmare, even when you have someone else prepare. As with many things in business, it isn't the federal govt that kicks your ass here, but the states and local taxes.

    Chet

  13. #13
    More Cheesier Than Ever Cheesehead's Avatar
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    Good news. Google got back to me and said it was OK to place AdSense from different accounts on the same page. We can then proceed as sole proprietors. I am also thinking we could rotate the ads within a page once every 2 weeks to get equal exposure.
    This World is Not My Home
    We're gonna go inside, we're gonna go outside, inside and outside. . . And then we're gonna go go go and we're not gonna stop til we get across that goalline! Quotes from the movie Rudy, 1993

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