Should I start an LLC or a C corporation with my friend?

Friend and I are wanting to start a business... Just the two of us. Start up cost is about $15,000.00. I will be initally funding this venture of ours. Friend has the main ideas for the business and trust and know his ideas are solid.

On a personal level, I manage money very well, and unfortunately, he doesn't. He is late on even basic payments for his own utilities and cell phone whereas I'm on top of payments. But he and I have been best friends for 15 years plus and can trust him with my life but not in financial aspects. I'm doing most of the legal work via w/ my attorneys and uncertain how to split profits.

I was initially thinking 60 for him and 40 for me but now that i'm writing this down, maybe it should be 50/50 split with me owning at least 70% of the business, so I would have control over the company due to above reasons. Any other feedback regarding starting a business in general would be appreciated.

You are in the EXACT same shoes as my EX BEST FRIEND and I were in 8 yrs ago. 17 yrs of being friends, etc.

He is just like you, and I am just like your friend but my money issues aren't as bad. But just like you, my friend got GREEDY thinking he deserved more than me, even thought it was MY IDEAS that were creating our company.

We did an LLC and split it 50/50. Later he brought in his wife as a secretary and cut her a %. Then brought in his brother as a worker and cut him a %. Then brought in his father and cut him a %. So then it was now his company and no longer mine as I was the lowerest share holder even thought it was MY IDEA.

Today, we are not friends, the company went bancrupt due to his greed of nothing is enough unless 100%. He lost both his homes, got a divorce, doesn't see his boys, his father has a lawsuit on him for $74k. Among many other items.

I myself came out untouched as his greed took responsiblity for what happened. He ran the numbers, he signed all the papers. And he went to the bottom due to his greed.

I'll tell you right now, make it 50/50. And if you can't get over the fact you are BOTH bringing 1/2 the company to existence, then don't even bother starting it. Just cause you have the cash or the numbers background does not warrant you as having more. Actually it warrants you to having less, as numbers doesn't make the sales. The creative side does that.. your partner.

I am back open, alone, no partners and will never have another. Just glad the customers knew and realized where the real tallent of the business was. With me, as they have returned to me as customers.

traumatized, nah. just urks one when a best friend does such acts. Report It

I would suggest an LLC because of the limited liability for you if it goes under.