sole proprietor can only have one owner or a married couple - outside investor would require a partnership at a minimum - get the partnership agreement in writing spelling out everything - share of ownership, share of income, who makes management decisions, etcinvestor is going to require something to say about how their money is used or why would they invest? I seriously doubt they would only take a silent/limited partner role, and since they are the ones putting up all the money - you have no right to demand complete control, since without that money, there is NO business
Sole Proprietor - you and you alone are responsible for debts which means any debtor will be coming after you. You have full control.Partnership - usually 50/50 - debts/profits are split equally and you both are responsible.Corporation - you could be the only director and you both could have equal shares 50/50. There are many ways to do it....just got to pick the one that rights for the 2 of you.
The critical factor is money and if you are naive enough to think someone is going to give you money to do as as you please then you are not thinking clearlyYou should sit down with the investor and discuss his needs and requirements around the business as an equal partner as you would not be able to go into business without themHow would you react if you were putting money into the business and you had no say what so ever and the person looses it when if you had worked together there may be a business later
Corporation is best, but takes money to incorporate.If you can go with sole proprietorship - do it. It s much cleaner than a partnership. I ve worked for and with companies that have both setups. With a sole proprietor, decision making is easy, you know they re solely responsible. Much, much cleaner.Mind you - you need the money for that ...
