July 7, 2014
With two brothers, I was raised that I had to share. “Share and share alike,” I was told, even though at age 10, I really wanted to hoard the last few Ring-Dings for myself. When entrepreneurs get involved in business partnerships, they tend to be sharers, wanting the good for all. But when a giver meets a taker, you have a personality conflict . . . and a potentially serious tax problem on your hands. Here’s how the unpleasant scenario can play out (I’ve seen it happen.): Anna and Barb went into business together as 50/50 partners. When business was tight, Barb often needed more than her 50 percent share. Anna had more personal financial resources and, out of friendship, she let Barb have what she needed–after all, how could Anna say, “No, Barb, you may not have the money you need to make your mortgage/car/insurance payment this month”? What kind of person would I be if I let a friend lose her house in foreclosure?” Anna had a rude awakening when time came to…
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I know first-hand that running a knowledge-based service business has unique challenges. It’s so much easier when you have an advocate in your corner. Over the past 25 years, I’ve worked with thousands of New York business professionals who want a legal advisor to guide and support them as they navigate the business world.
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