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I've been with the same small business for many years now and am as close to being a partner as you can come, without having paperwork to show for it. We're growing and the owner wants to move to a larger location, but he doesn't want to pay the price of a larger location so he wants to move the location to a more affordable area.
I live about an hour away from the current location, so he suggested we move it down near where I live where its much cheaper, that I'd have full control of the day to day business (which I pretty much have now anyway). But there are a few Pros and a few Cons. 1) He prefers not to have the lease in his name as it is too far away from him, and he doesn't want me to have all the power. So he wants me to put the building lease in my name, with an agreement between the two of us so basically we can't screw each other over, ok I get that. 2) He feels that the business moving right by my home is compensation enough, that because my commute will be saving upwards of $400 a month I should consider that a raise. I feel this really isn't right as I'm taking on risk here, and the business is benefiting by saving over $3,000 a month vs looking for larger space in its current location. Yes I'll benefit from the move, but not as much as the overall business and I feel I'm entitled to a reasonable pay raise because of that.
Am I just too close to the situation here? Should I be happy that my commute will be right down the road and I'll be saving money.. Or should I really push that I deserve a pay raise because of my willingness to put my name on the lease for the business? I don't want to cutoff my nose to spite my face, I just want whats right and fair.
It doesn't make sense to me. Why would you put yourself at such a huge financial risk? You would be liable for the rent, insurance, utilities, etc for the term of the lease. It's not your business.
I don't think your side agreement with him could protect you from being on the hook personally for the expenses of the new location.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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I'm in commercial real estate (landlord) and first of all, I would not lease to anyone who was not owner of the business, we verify that with state license records. For you, even with real compensation, the liabilities to you as mentioned by KaraG would make it a terrible decision.
It doesn't make sense to me. Why would you put yourself at such a huge financial risk? You would be liable for the rent, insurance, utilities, etc for the term of the lease. It's not your business.
I don't think your side agreement with him could protect you from being on the hook personally for the expenses of the new location.
I don't want to go too deep into detail, but I'm limited from any risk but nobody knows that, just trust me on that one. Nothing illegal, just about knowing the right people. The main point of me putting the lease in my name is so that I can't move everything down there, be the right hand man and suddenly say, I want a 50% raise or I'm gone. It could theoretically bankrupt the company. Not that I would ever do that, but I get protecting yourself.
So even if I hypothetically had zero risk, but I was saving the business $3k-$4k a month, should I still be entitled to some type of financial increase beyond whatever I personally save in my commute? I'm not even looking for a ton, an extra $500 a month would make my day. I am somewhat legally bounding myself to the company over the length of the lease terms (which if I really needed to I can get out of, friends in high places) I feel like that alone should suggest I be rewarded.
I was in a car accident. It was the other person's fault. I needed a lawyer. I hired a lawyer while in a state of distress. He eventually settled the case; theoretically in my favor. Yes, I received some compensation but he received a lot with out going through the pain. Theoretically he got me the best money I could have gotten but, he got just a little less than I did due to Dr/hospital visits exceedeng my insurance coverage, so payments were paid out of my insurance payment & his was not affected because he got 1/3 regardless of my subsequent payments.
So, who lost in the end? Yes, he did what he said he'd do, he just somehow forgot to point out the small print.
Just saying, I'd give it careful thought as to who has the most to lose if you sign on the dotted line.
The main point of me putting the lease in my name is so that I can't move everything down there, be the right hand man and suddenly say, I want a 50% raise or I'm gone. It could theoretically bankrupt the company. Not that I would ever do that, but I get protecting yourself.
I had to re-read the first post to understand what you're saying here. It's not your idea to put the lease in your name, it is the owner's idea.
That makes it an even worse idea. Makes me wonder if the whole company or his finances are shaky.
It's not just signing the lease. Like Hemlock said, he wouldn't even let you sign it. What about the insurance, the utilities, taxes, your credit? Are you married? Own a home? You better run this by your spouse and an attorney.
I wouldn't put a business lease in my name unless I had ownership of the business. If I had partial ownership, I'd expect the other co-owners to all be on the lease with me.
The warehouse owner is a multi-multi millionaire and a close personal friend, he's doing this as a favor to me. We've discussed everything, I'm putting the business through an LLC I created requiring no personal guarantees on my part. If anything were to go wrong he will not be going after me for anything. This is the only reason I'm willing to do this, my boss doesn't realize I have nothing to worry about, that's inside information, and we plan to keep it that way as I don't want my friend being screwed over either. This is why I'm able to sign the lease. The contract between my boss and myself states he is responsible for all finances pertaining to the LLC. I've had my lawyer review the situation, and given the lease will actually be signed through an LLC and there is no personal guarantee required even if my friend had a change of heart the trail would stop at the LLC. Again, I'm treating this 100% as a full business transaction to keep everyone honest, I've just been able to eliminate all my own personal risk.
With that said, I feel its a little ridiculous that I'm not seeing a financial gain for my willingness to do this at the benefit of the business. And our company is doing quite well, we need the space because we are growing, and with just a few employees we pull in a few million a year on very strong margins.
You keep saying "our company" but you don't have any legal documented ownership of the comoany. Therefore it is your boss's company and not collectively yours.
I've been with the same small business for many years now and am as close to being a partner as you can come, without having paperwork to show for it. We're growing and the owner wants to move to a larger location, but he doesn't want to pay the price of a larger location so he wants to move the location to a more affordable area.
I live about an hour away from the current location, so he suggested we move it down near where I live where its much cheaper, that I'd have full control of the day to day business (which I pretty much have now anyway). But there are a few Pros and a few Cons. 1) He prefers not to have the lease in his name as it is too far away from him, and he doesn't want me to have all the power. So he wants me to put the building lease in my name, with an agreement between the two of us so basically we can't screw each other over, ok I get that. 2) He feels that the business moving right by my home is compensation enough, that because my commute will be saving upwards of $400 a month I should consider that a raise. I feel this really isn't right as I'm taking on risk here, and the business is benefiting by saving over $3,000 a month vs looking for larger space in its current location. Yes I'll benefit from the move, but not as much as the overall business and I feel I'm entitled to a reasonable pay raise because of that.
Am I just too close to the situation here? Should I be happy that my commute will be right down the road and I'll be saving money.. Or should I really push that I deserve a pay raise because of my willingness to put my name on the lease for the business? I don't want to cutoff my nose to spite my face, I just want whats right and fair.
If you don't have the paperwork to show it, you don't have anything.
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