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Unread 09-05-2012, 02:22 PM   #17
landarc
somebody shut me the fark up.

 
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As a person who was in a small corporation for years, and I still view it as a positive, here is how I see it.

1. We each had different skill sets, and those sets complemented each of us. One of us was older and had a great deal of management experience, I was better with technology and money, the third guy was a marketing whiz. Between the three of us, we were stronger as a group than individuals.

2. Three people can simply do more work than one or two. Yes, you would be splitting with them, but, they would be splitting with you as well. You seem to be under the assumption that you are most certainly going to be flowing the bulk of the profit. Are you sure of this? Hot dog carts can be amazingly profitable.

3. If there are 5 of you, and either you or your husband cannot work, or you get a vend that is much larger than two can handle, the other partners are available and have a vested interest to assist you. This can be a real asset.

4. LLC's are a great option, and for a food business, they are even better. But, a corporation that is making money can be truly a asset to you as well. Only an attorney familiar with your exact situation can advise you. Mine suggested that the C-corp was the way to go, but, we were not doing food.

Now, the negative side, a corporation is very much like a marriage, except that there are usually more than two people. You must trust your partners, and you clearly do not. Either you need to do more discovery, or you already know you cannot trust them, that is a recipe for disaster. I trusted my partners back then, I trust them now, and I do mean, that I can hand them my check book with trust that they will not do me wrong.
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