U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Economics > Business
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 05-05-2019, 09:22 PM
 
309 posts, read 443,587 times
Reputation: 531

Advertisements

My company is a C-Corp. I have been asked by a much larger company to consider partnering with them. What will happen to my C-Corp should I decide to do this? Also, since they are much larger than me, how do we determine the percentage of ownership for each? They are bringing the money and resources and I am pretty much adding a new product line to their business.
Rate this post positively Reply With Quote Quick reply to this message

 
Old 05-06-2019, 04:01 AM
 
Location: The Triad (NC)
31,169 posts, read 68,077,221 times
Reputation: 37019
Quote:
Originally Posted by terraaus View Post
I have been asked by a much larger company to consider partnering with them.
What will happen to my C-Corp should I decide to do this?
They'll disappear.

Quote:
They are bringing the money and resources
and I am pretty much adding a new product line to their business.
...how do we determine the percentage of ownership for each?
That's called negotiation.

If you don't already have the good attorney and CPA that this sort of deal warrants...
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-06-2019, 09:10 AM
 
3,511 posts, read 1,167,405 times
Reputation: 5318
Get a good CPA

Get a good CPA

Get a good CPA!!!!!
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-06-2019, 09:29 AM
 
5,388 posts, read 3,606,077 times
Reputation: 10941
Tread carefully! Will you have any control? Can you sell elsewhere?

What if they sell $0 of your products? Do you trust them? Will you still be involved?

My son is doing something similar, they worked out an agreeable split on product sales, he produces a certain amount and they market, sell and do customer service. They pay his LLC and he gets a 1099.

If you're just doing one new product line, I think your C-corp would stay and you'd work out terms but you wouldn't really be forming a legal partnership.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-06-2019, 06:18 PM
 
7,299 posts, read 3,298,113 times
Reputation: 22169
Quote:
Originally Posted by terraaus View Post
My company is a C-Corp. I have been asked by a much larger company to consider partnering with them. What will happen to my C-Corp should I decide to do this? Also, since they are much larger than me, how do we determine the percentage of ownership for each? They are bringing the money and resources and I am pretty much adding a new product line to their business.

If you have a C corporation and don't have a crackerjack CPA and corporate attorney, then you have zero business going through a business deal of any kind. In fact, I'm trying to figure out why you are a C corporation in the first place.
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics > Business
Follow City-Data.com founder on our Forum or

All times are GMT -6. The time now is 08:03 PM.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top