I'm planning on registering for a reseller's permit and it's telling me to register for a business entity. Currently I have a friend who wants to start something with me. Is it a good idea to do the Partnership/Co-Owner? We don't have any terms and not sure if we'll have one. Our business is going to be an e-Commerce and I'm not sure how big our e-Commerce will get and it's not like a huge business. My issue is, what if things don't work out and we plan on splitting up in the future?
Or would it be better if we register our own business entity...? As I continue to research, would it be better if I just submit a Unicorporated Business Organization, is this the Sole Proprietary? Would it be possible if my partner do the same, register their own reseller's permit and business entity as a Unincorporated Business Organization?
Thanks for your help and suggestions.
Is it a good idea to do the Partnership/Co-Owner?No-one can really answer that. Its up to you to decide, but keep in mind that friendship and business partnership frequently become mutually exclusive.
We don't have any terms and not sure if we'll have one.This is a very bad idea. Make an agreement on terms, put it in writing, have an attorney (for each side) to go through it, and you'll save a lot of grief to both of you later.
My issue is, what if things don't work out and we plan on splitting upThis is exactly why you have to have a written agreement, that would cover this area in particular.
in the future?
Or would it be better if we register our own business entity...?Totally unrelated to anything you wrote up until this question.
a Unicorporated Business Organization, is this the Sole ProprietaryNo, its unincorporated business. In the US, incorporated business is a Corporation. Unincorporated business is a sole-proprietorship for an individual, a partnership for a group of individuals (or entities) or a LLC for either. Partnerships may be general, limited, limited liability or limited limited liability. Depending on state laws, you should chose which kind of entity is the most suitable. In other countries the incorporation rules may be different, check your local laws. Generally it is best to write your country of residence in the question or add a location tag.
Would it be possible if my partner do the same, register their ownThen you would not be partners, but two separate and unrelated businesses. If you're related - you're partners and should have a partnership agreement/corporate charter/LLC operating agreement - depending on what business entity you chose.
reseller's permit and business entity as a Unincorporated Business
Not executing properly any one of the steps might lead to failure.