QUESTION
Is it a good idea if I let a potential work off a percentage to buy in to my service business?
Asked on Mar 30th, 2014 on Labor and Employment - Wisconsin
More details to this question:
I have a service business worth $130,000. I have a potential coach that wants to work off "sweat equity" to buy in to the business. He wants 49% and wants to work that amount off until he gets to that percentage. Is this a good idea? This could potentially take him 3-4 years to accomplish.
3 ANSWERS
I am unable to give you advice. You have not asked a question involving the law.
Answered on Apr 02nd, 2014 at 6:19 PM
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Before I would render any opinion, I would need to know all of the facts. There are any number of ways to allow a person to buy into a business, but all of them have their advantages and detriments, and must be looked at for their tax effect as well. Given the numbers you are speaking of, it would be worth seeking counsel in order to avoid a mistake.
Answered on Apr 02nd, 2014 at 6:16 PM
Contact an attorney to be certain that you comply with all state and/or federal laws including tax laws.
Answered on Apr 02nd, 2014 at 6:15 PM