Friend wants to partner up - he's got clients in Orange County, I've got Riverside covered. Thinking about formal partnership vs just hiring him as contractor. Thoughts?
Partnership vs hiring employees - pros and cons
Partnerships can get messy. Make sure you have detailed agreement upfront about responsibilities, revenue splits, client ownership. Lawyer worth the cost.
I went employee route instead of partnership. More control, cleaner structure. Pay based on revenue generated plus base salary.
Consider 1099 contractor first. Lower risk, less commitment. If it works well for 6-12 months, then discuss partnership or employment.
Partnership worked great for me in Idaho. Key is complementary skills - I handle technical analysis, partner manages client relationships and marketing.
Whatever structure you choose, document everything. Who owns existing clients, how new business gets split, what happens if someone wants out. Saves headaches later.