Joint business: advantages and disadvantages. Business rules

14May

Hello! In this article, we will talk about forms. joint activities IP.

Today you will learn:

• How can individual entrepreneurs unite for joint profit;
• How to draw up an agreement between the participants of the activity;
• when merging.

How can SPs merge?

There are several forms of such joint activity:

• One individual works, and several more partners work unofficially with him;
• simple partnership;
• Joint work of IP and LLC.

The first case is the most unreliable and can become a reason for disagreement among the participants in a voluntary union. One individual entrepreneur has an official status, is registered with the tax authority as a taxpayer. Other allies officially cannot participate in this IP in any way, since an individual entrepreneur, by law, includes only one individual.

It turns out that all the profit belongs to the owner of the business, and in case of any disagreement, the rest of the participants may be left with nothing.

To prevent this from happening, loan agreements are usually drawn up. Those participants who have contributed to the development of the company draw up a loan for the contributed share in relation to the IP itself. The profit received by the company is distributed among all participants in proportion to the contributions.

Most often, this form of cooperation between an individual entrepreneur and an individual occurs between close relatives. Unfamiliar faces are unlikely to decide to engage in this form of business.

At the same time, the owner of the IP is officially engaged in all the affairs of the company, he also submits reports to the tax authority. The remaining members of the union can only help in current activities.

This form of cooperation is the least common. Let's talk about other types of unions in more detail, since they are much more common in everyday life.

Create a partnership

A simple partnership is a form of association of several individual entrepreneurs. This is a beneficial cooperation that allows the parties to the agreement to pool their own resources and direct them in the right direction. Since there is more capital and property in the event of a merger, it is possible to make more big deals, which are not allowed for one IP.

When forming a partnership, each of the participants contributes its share to the development of the joint business.

She can act as:

• Money;
• Some property (for example, you have your own office that you want to transfer for the purposes of the partnership. This also includes cars, equipment. If you, then you also have the right to offer it to the newly-made union for profit purposes);
• Useful acquaintances (if there are influential people in your environment who can contribute to development, feel free to tell the new partnership about it);
• Skills and knowledge (do you know the algorithms for compiling accounting entries or are you well versed in vehicle repair? Then you can apply your skills for their intended purpose).

All profits that the IP association receives are distributed among the participants within the limits of their initial contributions. This means that the resulting profit is immediately divided by the number of participants.

Depending on what condition for the distribution of income will be spelled out in the agreement between the allies, the profit can be divided equally or within the agreed limits.

If the partnership for some period of time worked at a loss, then it will be distributed among the participants proportionally. That is, each partner risks his own property within the limits of his contribution.

Each member of an association consisting of several individual entrepreneurs has the right to represent the interests of the partnership. He can conduct transactions, appear in court or make purchases of goods.

IP joint activity agreement

This agreement is a simple partnership agreement, you can use it and modify it to suit your needs.

• Download contract

We open LLC

Several IPs (at least two) can. This is a more serious and responsible form of pooling your own contributions. is liable only for the property of the company. personal property, vehicles, money and other property does not participate in the life of the association.

When creating an LLC, a constituent assembly of participants appears. It also accompanies the activities of society throughout the entire time of existence. Any decision is made only by such a meeting.

As a result of the meeting of all the founders, a certain decision is made, which is entered in. This document is stored in the organization and may be required both for the tax authority and for banking institutions.

All possible activities of two or more individual entrepreneurs in the created society are specified in. Here the association itself is prescribed. By law, it cannot be less than 10,000 rubles. An LLC can have up to 50 members.

The work of the society is built on the common contributions of the participants. Unlike IP, and. LLC is considered the most reliable partner in transactions, and therefore it is trusted by a significant number of counterparties than individual entrepreneurs.

Opening and maintaining an LLC is a rather costly process. However, this form of association allows you to expand the boundaries own business and go out for more high level. It makes sense to create an LLC if there are several applicants and they are going to conduct large-scale production.

Can sole proprietors and LLCs interact?

There are frequent cases when an alliance is concluded between an individual entrepreneur and society. Let's say you are an entrepreneur on favorable terms, but you understand that running a business on your own is becoming burdensome for you.

If you have familiar founders from an LLC who can use your premises, then drawing up an agreement will be beneficial to both.

Joint activities of IP and LLC are accompanied by the conclusion of an agreement for a specific period of validity. In this case, the IP acts as a partner of the LLC and has the right to profit from joint activities. This form of cooperation will be in the nature of a simple partnership. In the considered case, the IP contributes its right to rent as a share.

The agreement between the members of the union outlines all parties to the transaction and highlights the profit of each member. Such an alliance has a beneficial effect on the development of IP. If you interact with an LLC as an individual entrepreneur, then your business will go uphill in case of favorable events.

We take into account the nuances in the agreement

In any form of joint activity of an individual entrepreneur, it is necessary to competently conclude an agreement between the participants of the union. Mandatory indication of even the most insignificant conditions will avoid difficulties in further activities and clearly delineate the scope of rights and obligations of all partners.

The agreement must include:

• The volume and content of the share of each participant (it is necessary to indicate the contribution of partners and the percentage that it makes up of the common property (future profit) of the partnership);
• A clause stating that the contributions made are joint shared property;
• Ways to cover losses by each participant;
• Contract term;
• Responsibility of the parties (you can include a line indicating that if the partnership incurs losses due to the unsuccessful actions of one of the participants, then the latter will cover the costs);
• The rights and obligations of each business partner;
• Item about respect for the property of the association.

The rights of members of an association usually include:

• Free access to the property of participants;
• Familiarization with financial statements;
• Carrying out transactions on behalf of the partnership;
• Getting income.

Reporting to the tax

If several individual entrepreneurs are combined into a simple partnership, then it is necessary to take into account in the reporting the financial flows of such a partnership and the movement of capital, affecting only a particular individual entrepreneur.

This is reflected in the income and expense ledger. It must be managed in such a way that reporting year it was clear which flows belong to joint activities, and which ones appear in the activities of the IP itself.

Moreover, each member of the association will have its own book. General reporting is not allowed.

This is important for a possible audit from the tax authorities. If there are any inaccuracies or discrepancies in the book, you will need to provide supporting documents. If there are none, then penalties will be applied to entrepreneurs, additional tax payable and, accordingly, penalties for late payment will be charged.

For those entrepreneurs who practice, the creation of a partnership is not allowed by law. The same applies to those who apply "Income" with a tax of 6% of profits.

Such restrictions are connected with fraud among entrepreneurs in the past. Individual entrepreneurs deliberately underestimated their own income and paid minimal taxes to the country's budget.

Paying is also important to consider. Those individual entrepreneurs that are on the simplified tax system, as a rule, do not pay VAT. However, when concluding an IP agreement with an LLC, you need to be careful.

Above, we described the case when an individual entrepreneur rents premises and is ready to enter into an agreement with an LLC. The individual entrepreneur himself should not pay VAT on rent, but when concluding an alliance, the individual entrepreneur must continue to manage the lease. Otherwise, the tax authorities may regard this fact as a sublease, for which you will have to pay VAT.

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Lawyers' answers (8 )

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Alexander

Good afternoon. Yes, it will, according to the signs, the agreement suits you under a simple partnership agreement:

Article 1041 of the Civil Code of the Russian Federation

1. Under a simple partnership agreement (agreement on joint activities), two or more persons (partners) undertake to combine their contributions and act jointly without forming a legal entity in order to derive profit or achieve another goal that does not contradict the law.

2. The parties to a simple partnership agreement concluded for the implementation entrepreneurial activity, can only be individual entrepreneurs and (or) commercial organizations.

Article 1044 of the Civil Code of the Russian Federation Conducting common business of comrades

1. When conducting common affairs, each partner has the right to act on behalf of all partners, unless the simple partnership agreement establishes that the conduct of business is carried out by individual participants or jointly by all participants in the simple partnership agreement.

When doing business together, each transaction requires the consent of all partners.

2. In relations with third parties, the authority of a partner to make transactions on behalf of all partners is certified by a power of attorney issued to him by the other partners, or by a simple partnership agreement made in writing.

3. In relations with third parties, the partners may not refer to restrictions on the rights of the partner who made the transaction to conduct the common affairs of the partners, except in cases where they prove that at the time of the conclusion of the transaction the third person knew or should have known about the existence of such restrictions.

4. A partner who has made transactions on behalf of all partners in respect of which his right to manage the common affairs of partners has been limited, or who has concluded transactions in the interests of all partners on his own behalf, may demand compensation for expenses incurred by him at his own expense, if there were sufficient grounds to believe that these deals were necessary in the interests of all comrades. Partners who have suffered losses as a result of such transactions have the right to demand their compensation.

5. Decisions relating to the common affairs of the partners are taken by the partners by common agreement, unless otherwise provided by the simple partnership agreement.

No, this is not necessary, the contract is valid even without notarization.

There are a lot of cooperation agreements on your site, but they all concern legal entities. Do not help me choose a sample contract for individuals, of course with the refinement of their nuances. Thank you in advance!

Preparation of a document is a separate option on the site, or you can contact any lawyer in the chat and order the preparation of a document.

As for the samples that you yourself can use, there are special differences from the contract, where the parties will be legal. there is no face, so you can also use this sample.

Good luck to you!

Respectfully,
Vasiliev Dmitry.

Good afternoon!

I agree with my colleagues about the agreement on joint activities. But why don't you create a 50/50 LLC and conduct this activity on behalf of this legal entity? Resources in an LLC can be invested in authorized capital, and to lease, free use, etc.

From a financial point of view, this scheme is the most cost-effective.

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Mikryukov Alexey

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373 answers

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Hello Sergey.

As my colleagues rightly say, a simple partnership agreement is regulated by the Civil Code.

Article 1041

1. Under a simple partnership agreement
(joint activity agreement) two or more persons (partners)
undertake to combine their contributions and act jointly without formation
legal entity for profit or to achieve otherwise
illegal purpose.

2. Parties to a simple partnership agreement,
concluded for the implementation of entrepreneurial activity, may
be only individual entrepreneurs and (or) commercial
organizations.

3. Features of a simple partnership agreement concluded for the implementation of joint investment activities (investment partnerships) are established federal law"On Investment Partnership".

That is, if the purpose of the partnership (joint activity) is to achieve profit (entrepreneurial activity), then individual partners must have the status of an individual entrepreneur.

Notarization of the agreement on joint activity is not required.

well and approximate form between two physical persons I do not have, but it is easy to fix. Order it via chat and it will be ready. ;-)

Well, as a bonus - a scheme regarding a simple partnership (may come in handy)

Sincerely, Mikryukov Alexey

Joint activity Joint activityEntity.doc Entity.doc

Hello

Will an agreement concluded between individuals on the joint conduct of business (without the creation of an LLC and other forms of enterprise, the question of responsibility for conducting commercial activities within this issue not considered)

Alexander

Controversial question. On the one hand, the law does not provide for the existence of contracts of this type. On the other hand, there is the principle of freedom of contract. I think that this agreement should be considered from the standpoint of existing judicial practice. That is, as far as I understand, the contract is needed in order to protect yourself in case of incorrect distribution of profits. That is, can you win a court case if and as a result of violation of such an agreement.

Do I need to certify this kind of contract in a notary's office? And are notaries allowed to certify such contracts?

Alexander

Since such an agreement is not named in the law in principle, then the notarial certificate

Good afternoon Alexander.

Will an agreement concluded between individuals on joint business conduct be legally binding (without the creation of an LLC and other forms of enterprise, the issue of responsibility for conducting commercial activities is not considered within the framework of this issue)?

Alexander

In my opinion, such an agreement will not have legal force. As Irina noted above, in this case, your actions will qualify as entrepreneurial. According to the current legislation, in order to carry out entrepreneurial activities, it is necessary to have an appropriate legal status Sole Proprietor, or establish a commercial legal entity with relevant goals.

Consequently, any actions of citizens (including the conclusion of any agreements) aimed at conducting joint business activities in circumvention of the rules established by the state for conducting such activities will be considered null and void in the eyes of the state.

Those. after the conclusion of such an agreement, you will not be able to enforce its execution, because. there are no appropriate legal mechanisms for regulating such relations.

Thus, you either need to register an individual entrepreneur / legal entity and enter into the simple partnership agreement described above, or establish a joint legal entity.

In my opinion, any agreements between citizens on the conduct of any business activities do not give rise to any legal consequences.

Sincerely,

According to Art. 421 of the Civil Code of the Russian Federation

Citizens and legal entities free in prison
contracts.

Coercion to conclude a contract is not allowed, for
except in cases where the obligation to conclude a contract is provided for
this Code, the law or a voluntarily accepted obligation.

2. The parties may conclude an agreement, either as provided for or
and not provided for by law or other legal acts.

3. The parties may conclude an agreement containing
elements of various agreements provided for by law or other legal
acts (mixed contract). To the relations of the parties under a mixed contract
apply in the relevant parts of the rules on contracts, the elements of which
are contained in a mixed contract, unless otherwise follows from the agreement of the parties or
essence of a mixed contract.

4. The terms of the contract are determined at the discretion of the parties, except
cases where the content of the relevant condition is prescribed by law or other
legal acts (Article 422).

In cases where the terms of the contract are provided for by the norm,
which is applied insofar as the agreement of the parties does not provide otherwise
(dispositive norm), the parties may, by their agreement, exclude its application
or set a condition different from that provided for in it. With absence
of such an agreement, the condition of the contract is determined by a dispositive norm.

5. If the terms of the contract are not determined by the parties or
dispositive norm, the relevant conditions are determined by the customs of business
turnover applicable to the relationship of the parties.

Too, you have the right to conclude one contract - mixed
contract.

DECISION
Plenum of the Supreme Arbitration Court
Russian Federation
Moscow#16March 14, 2014

Freedom of contract and its limits clarified

1. In accordance with paragraph 2 of article 1 and article 421
of the Civil Code of the Russian Federation (hereinafter - the Civil Code of the Russian Federation) citizens and
legal entities are free to establish their rights and obligations on the basis of
contract and in determining any conditions that do not contradict the law
contracts.

According to paragraph 4 of Article 421 of the Civil Code of the Russian Federation, the terms of the contract
determined at the discretion of the parties, unless the content
the relevant condition is prescribed by the rules binding on the parties,
established by law or other legal acts (imperative norms),
valid at the time of its conclusion (Article 422 of the Civil Code of the Russian Federation). In cases where
the term of the contract is stipulated by the rule, which is applied insofar as
agreement of the parties does not establish otherwise (dispositive rule), the parties may
by their agreement to exclude its application or to establish a condition different from
provided for in it. In the absence of such an agreement, the terms of the contract
is determined by the dispositive norm.

In applying these provisions, courts should take into account that
the norm defining the rights and obligations of the parties to the contract is interpreted by the court on the basis of
from its essence and goals of legislative regulation, that is, the court takes into
attention not only to the literal meaning of the words and expressions contained in it, but
and those goals that the legislator pursued by establishing this rule.

That is, you are free to establish your rights and
obligations on the basis of the contract and in determining any non-contradictory
the law of the terms of the contract.

Decree of the Federal Antimonopoly Service of the Volga-Vyatka District dated April 19, 2010 to
case N A79-7792/2009"..

As follows from the case file, the municipal unitary
enterprise "Leninsk district department of housing and communal
economy” (legal predecessor of the Enterprise, customer) and the Company
(contractor) entered into a contract for maintenance, sanitary
maintenance and current repair of housing stock and adjoining territories from
02/01/2008 N 11, under the terms of which the contractor assumed an obligation to
on behalf of the customer to perform work on maintenance, sanitary
maintenance and current repair of the housing stock, engineering infrastructure and
adjoining territories located at the customer on the right of economic management
(operational management). general characteristics housing stock, targeted
list of objects handed over by the customer to the contractor for safety and operation
housing and non-residential stock, a list of engineering equipment, data on
adjoining territories are given in Appendix N 1. The list, composition and
the frequency of work is given in Appendix N 2 (clauses 1.1 and 1.2
of the agreement). In pursuance of the terms of the agreement, the Company completed the work and provided
services provided by the contract, and presented them to the customer for payment.
The specified works and services are accepted by the customer according to acts without
comments. Non-fulfillment by the Company of the obligation to pay 312,673 rubles 39
kopecks of debt was the basis for the Company's appeal to court of Arbitration With
this claim. The legal relationship of the parties is based on a mixed contract,
containing the elements of an agreement paid provision services and contracts
contract..."

That is, your legal relationship will not be based on a mixed
an agreement containing elements of an agreement for the provision of services for a fee and
contract agreements...

T Thus, you should conclude a mixed contract.

I can provide a contract drafting service.
With uv.

Good day to all! Looking through the materials already published on the site the other day, I came up with the idea that for the successful start of a new project, many of us may simply not have enough start-up business capital. Despite this fact, I personally know many people who would be only too happy to profitably place their accumulated savings.

Of course, there is an alternative called “bank deposit”, but there is also a certain risk there, and you won’t earn much on a deposit. Here in this case there is a docking of the two sides, both of which are united by a common vector - how to make money.

Suppose you have already thought about this topic, but have not made a final decision for yourself. Let's take a closer look at what a business for two is, the pros and cons of such a project, as well as its feasibility and organizational difficulties.

As in every business, in a joint business, partners are warned of their own characteristics, which should be prepared for. But I will start, nevertheless, with the advantages that distinguish a business for two:

• Decrease initial investment for . It is clear that the easiest way is to register a business alone, hire staff yourself and collect the cream. But in our time, even for ordinary trading, a certain capital is needed, which will allow you to stay afloat and not burn out in the near future. And for some business dollars
• Reduction of risks, which are divided proportionally among all participants. This is especially true for new lines of business, and in cases where participants do not have full-fledged experience as a merchant
• Savings on labor costs initial stage. It often happens that the invested funds are only enough to organize a business, and there is no longer enough money to hire several people. So the companions have to spin on their own. But doing it together is much faster and more efficient. Take, for example, the same controlling organizations and funds - how many of them you need to run around in order to obtain permits. This can help optimize business costs at the initial stage of the project.

• "One head it's good, but two better". Together it is easier to overcome the first failures and figure out how to counteract the same inspection bodies. What does not come to one's mind, the second partner will tell. After all, no one is immune from difficulties, but creative ideas don't come to mind every day.

This also includes mutual psychological support of partners. The first failures can easily undermine self-confidence. In this case, one of the partners can successfully lend a shoulder to the other. The feeling that there is a partner next to you who is no less interested in the success of the common business than you can be great, no matter what.

What should be feared by future partners

At the same time, I would like to highlight the following main problems that await partners in a joint business:

1. The sense of ownership becomes more vague. To understand what this leads to, it is enough to recall the Soviet era with its principle "Everything around is collective farm, everything around is mine." Of course, this does not happen in every joint project, but it is absolutely clear on a psychological level that the more owners there are, the more difficult it is to consider yourself a full-fledged owner. As a result, there is a loss of interest in their offspring and the potential collapse of the business model.
2. Difficulties in management. As soon as there is more than one owner, everyone begins to pretend to be a kind of professional manager and business executive. Everyone is trying to impose their point of view on what should be effective business processes and communications in the team. Gradually, forces are invested not in the development of the case, but in the tug of war. The problem of “how to be in charge” is inherent in most joint projects, and few manage to get out of it with dignity.
3. Deterioration of personal relationships. Unfortunately, the well-known parable on the topic of how to make an enemy out of a friend by lending him money is shown here in all its ins and outs. Moreover, conflicts can arise when the first difficulties arise, as well as with the first successes of the enterprise. For this reason, it is best to start a joint business not with a relative or friend, but with a stranger. In any case, relations in such a situation can not be sought to be preserved.
4. The issue of profit sharing. Despite the apparent simplicity, not only losses quarrel partners, but also a positive financial results. In fact, if the business begins to bear fruit, then involuntarily there is a feeling of dissatisfaction with the fact that you have to share money with someone else. In other words, you will receive only half of the profit, and not all of it, and this, in its own way, must also be able to survive.

Procedural tricks of setting up a business for two

Now let's talk about how to arrange a joint business, and what pitfalls exist here. The simplest is the registration of individual entrepreneurship, but this form provides only sole participation in the business from a legal point of view. If one of the partners trusts the other enough, then this method has the right to life.

Another thing is that you need to somehow secure your start-up capital. A loan agreement will come to the rescue, which is concluded between two equal persons. Such an agreement must be drawn up for each deposited amount of start-up capital. In this case, the second participant, the one for whom the business is not registered, will be able to claim at least compensation for their initial investments.

A slightly more complicated, but also safer way is to register both partners as entrepreneurs. Further, they enter into a partnership agreement between themselves, which may be referred to as an "agreement on the conduct of joint activities." It prescribes all the necessary rules that relate to the rights and obligations of each participant, the authority to manage the project, and the distribution of profits.

The disadvantage of this path is the need to submit reports and pay taxes in double size. But on the other hand, each of the participants will have full-fledged guarantees of security and financial responsibility, and this costs much more.

It is even better to follow the path of registration and creation of a joint company, for example, a company with limited liability(OOO). Of course, it makes sense to register an enterprise for 2 founders at once, and not for one. If the registration of a business is carried out only for one of the partners, then he will have the rights solely. If any problems arise, it will be virtually impossible to prove anything to the second of the private traders.

So, both participants draw up memorandum of association, which specifies the participation of each of them in the form of cash contributions, contributed assets, as well as their shares. The contract is sealed by the signatures of both partners and has quite significant legal force. Depending on the contributed start-up capital, each of the participants will own a certain percentage of the ownership of the business.

How to amicably disperse companions

Another interesting and important point is how to divide existing business for two. Such a need may arise regardless of whether things are going well or not. When the partners have decided to part, it is important to correctly divide the assets and existing losses.

The greatest difficulties arise precisely in the division of losses, since this is what everyone will have “in the red”, but not “in the black”. The most loyal way is that both participants sit down at the negotiating table and agree amicably. Because otherwise you will have to go to the judiciary.

Raise all the agreements concluded at the initial stage. Assess the degree of participation of each of the parties proportionally and in monetary terms. If a specific property has been contributed as assets and it has been preserved, then the question of its right holder should not be raised at all.

The contract could contain a clause on the return of capital after the development of the project. Pay attention also to the points in which the powers of each of the parties were regulated. All this can be reduced to a mathematical component and evaluated in monetary terms, which will help participants exit the business with minimal losses.

Friends, I hope you could benefit from this material. Finally, I note that a joint business with another person is best done if you have the same views on the principles of doing business. And I’ll also say that without decent relationships that are built on mutual respect, a long-term business for two cannot be built. Therefore, carefully approach the choice of your companion. Subscribe to our news and stay up to date with the most useful information from the world of business and finance. See you!

Each entrepreneur is obliged to pay taxes to social funds, regardless of his income. Back in 2009, the payment was seven thousand rubles, in 2013 the amount rose to 35,664 rubles. This number can be reduced if you are not an employer.

Unfortunately, only one person can be selected as an individual entrepreneur. If you want two to be listed in the owner's documents, then it is best to open an LLC.

Open IP only for one participant

It is worth mentioning right away that this path is fraught with many risks, and not only for a person whose name is not included in the documents. If you want to minimize the amount of tax and enjoy the privileges of individual entrepreneurship together, then you can open an IP for only one person.

Wherein, the second participant in the business will be only an unspoken co-owner of your institution. This path is usually chosen by close relatives or best friends who have no reason to doubt each other.

However, no matter how prosaic it may sound, when it comes to profits or finding out who has invested more effort, time and money in a business, “friendship can be friendship, but money can be apart.” Therefore, a person whose rights are not legally enshrined in official papers can very easily be left with nothing if it comes to a quarrel. To prevent this, a loan agreement should be drawn up between two equal individuals every time an unlisted participant invests his money in the development of your common cause.

If your relationship becomes strained, the saved loan receipts will help return the money invested to the informal co-owner. Yes, this is not a panacea in case of a quarrel. this owner will not receive an honest half of the business or that part. which he claimed, but the return of material costs is at least something. Unfortunately, this is the best. what the law offers for such IP participants.

Who is responsible for the collapse of the business?

But, not everything is so smooth with a person entered as an individual entrepreneur. It is he who will be "responsible" before the law. if the business is not profitable. According to Russian legislation, it bears financial responsibility if the business "burns out".

And this liability is not limited to the property associated with your company, as it happens with LLC, but extends to the personal movable and immovable property of the entrepreneur. In other words, if the business turns out to be unprofitable, then it is the owner who can describe the car, apartment and other property, and the co-owner will get away with it as a person who is not indicated anywhere in the documents.

Therefore, if you choose a similar option for doing business, you must be one hundred percent sure of your partner, and preferably one hundred to ten percent. And this applies to both sides.

simple partnership agreement

The second option for doing business under these conditions is called the "Contract of Simple Partnership". This is no longer such a risky adventure as the first method and you can use it when dealing even with not the closest friend or relative without fear. The whole point of the method is that both persons register themselves as individual entrepreneurs(more about registering an individual entrepreneur in pension fund find out ).

And then they create and sign a “joint activity agreement”. In this agreement, the persons prescribe the rights and obligations of each of the parties, by the way, there may be more than two of them, as well as, if desired, the amount of profit and certain actions of each party. Actually, this option can be described as the creation of a company by two or more partners without opening a legal entity.

The advantages of this model seem to be obvious: the co-owners are not practically dependent on each other, the profit is divided depending on the contribution of the parties, in the event of a quarrel or conflict of interest, everyone can calmly “go their own way”. However, every cloud has a silver lining, and there are also disadvantages in this regard.

One of the biggest downsides is the two-way reporting. Each entrepreneur in such an agreement is obliged to keep records of his own actions and contributions, as well as records of actions directed and made in the partnership.

For a novice businessman, this can be a very complicating bureaucracy. Also, do not forget that in the case of a joint venture agreement, both entrepreneurs are required to pay taxes directly from each other and the amount of tax, of course, will be much higher than the amount of one individual entrepreneur.

However, this may turn out to be a "game worth the candle" for you. if insurmountable differences stand in the way of your partnership and the relationship will have to be terminated. After all, in this case, no one will lose anything, and perhaps it is worth the higher tax and more paperwork.

As you can see, it is quite easy, but only one person should act as a private entrepreneur. If necessary, you can resort to a simple partnership agreement, but still, if you want to open a common business with one starting capital, it is better to register an LLC.

More about a simple partnership agreement using an example construction company can be found in the video.

When starting a joint business, many entrepreneurs overlook a few important points on which it is necessary to agree, considering them secondary. Today we will look at 7 Common Mistakes that could bring down your joint venture.

At the very beginning of opening a business, future co-owners should certainly discuss the following issues:

1. Choosing a partner.

Whom to choose for joint business- This is the question that every aspiring entrepreneur should think about. It is believed that the worst option to choose from are relatives and close friends. It is paradoxical, because we usually have trust in such people, which, as it seems to us, is necessary in business.

But the main danger here is that family and friendship relationships in business are often destroyed. You have to choose what is more important; and if relationships with loved ones are really important, then it is better to keep them and not mix them with business ones.

When you need to take into account everything: his reputation, business and personal qualities; the impression of future partners from each other will be important - it should be mutual sympathy. A different attitude will inevitably become an obstacle to business.

2. Shares in business.

Very often, business partners stop at the option "50/50" , rightly believing that two adults with the same capital can be equal in business. However, practice shows that such a decision often turns into problems for the company. During the work, it turns out that each of the partners has his own view on resolving issues, their tactics are different, and so on. And they are increasingly unable to agree, as each insists on his point of view.

The best solution here would be to elect a lead leader who is endowed with great powers, but he must also bear great responsibility for his decisions. It is desirable that this person has experience in entrepreneurial activity, at least a little.

3. Separation of duties.

Highly it is important to share between the co-owners the areas of decision-making and responsibility. A clear separation is necessary so that the second business partner is not tempted to shift the entire load and obligations to the first person of the company and, as a result, exist at his expense.

The division of duties is best done in writing. This will help avoid situations where it is not clear who is responsible for what and who should correct errors that occur.

4. Options for terminating activities.

Of course, few people want to think at the beginning of their activity that the enterprise can ever cease to exist. But this is not such a rare case that one can ignore this issue. The statistics speak for themselves - 70-80% of businesses close in the first year. Be sure to agree on how the partners are going to disperse. The ideal option would be to fix these conditions in the company's charter.

5. Business plan.

Many firms start with the fact that after registration they simply deploy activities in a certain area. Not everyone bothers to run their own business.

However, the initial preparatory stage- not just a tribute to fashion, but the foundation on which the company will develop further. Without a clear plan at hand that takes into account possible difficulties, obstacles and options for working in case of failure, a company may encounter unexpected pitfalls that it cannot overcome.

6. Distribution of profits.

Unfortunately, situations are not uncommon when this issue is ignored when creating a business. But it is obvious that partners may have different views on how much profit will be reinvested, how much will go to personal needs and to attract new projects.

Available regular voting option on the distribution of profits. However, the minimum percentage that will be invested in the development of a common cause must be jointly determined and fixed in advance.

7. Use of personal and borrowed funds.

Investing your own funds for many novice businessmen seems to be a risky business. However even more risky is to use, which in case of failure will still have to be returned.

This question is worth thinking about and discussing., whether the opportunities for entrepreneurs to start work only at the expense of personal funds and what are the chances of a painless return of funds raised in the event of bad start. Be sure to reflect this point in the business plan.

The main thing to remember when starting any business, is that it should bring pleasure and provide an opportunity for self-realization to those who participate in it. And then, with the right organization, the business is doomed to success!