Starting a business with your romantic partner or spouse could be the best decision you have ever made. Or, it may turn out to be the worst.
Running a company with your other half is not always easy, but then neither is running one with someone else. While numerous couples have built fantastic businesses together, it all depends on your relationship. Are you sure that a disagreement about moving the company forward will not turn into an argument about how you never value your spouse’s opinion on anything?
Plan for the worst when starting a business with your spouse
Here are just two of the many things you need to consider to avoid unnecessary complications and to limit any adverse effects on your personal life:
- How will you file taxes? This depends upon which entity structure you choose for your company. Finding out more before you start allows you to make a well-informed choice. Making a business profitable is hard enough without making it even more challenging by hampering yourself with unnecessary taxes.
- How do you separate? What if you realize your business relationship is not working out? As long as you remain together and any income goes into the family kitty, one person stepping out might not be an issue. Yet, what if your personal relationship also breaks down? How will you ensure each person is rewarded for their contribution to the company? How will you decide who keeps control if you both want to continue operating the business, just not with each other?
Seeking business advice now, before you enter into business with your partner, makes it less likely you need marital guidance later because business problems have become personal.