Joint venture agreement advice UK

JadMac · Feb 2, 2015

So me and another individual have decided to merge our online businesses, this involves sharing the same domain, the same trademark and social networking profiles. As I've never dealt with this kind of an agreement, I'm just wondering if anyone knows the exact type of agreement that needs to be made to ensure each of us has a 50/50 share of everything. So far online I've come across "Joint venture agreements" and "business partnership agreements".

Anyway advice would be appreciated,

Thanks

phirex · Feb 2, 2015

'business partnership agreement' is what you need.

JadMac · Feb 2, 2015

Thanks, do you have any idea how much it costs?

50cent · Feb 2, 2015

Have you formed a limited company with a 50/ 50 split? That will formalise the deal much more.

JadMac · Feb 2, 2015

Nope, the other individual has a limited company already while I'm a sole trader atm....would would you recommend?

Zenax · Feb 2, 2015

I would say start a company and split the shares 50/50, you will have to do it anyway as soon as you start making money or the tax man will come knocking.

JadMac · Feb 2, 2015

If they've already got a company though, would it not be more costly for them to run two?....Also how do you make sure everything is protected within that specific company? e.g. domain, trademark, revenue etc

LostConnection · Feb 2, 2015

Seeing as you're in the UK, starting a company (whether an LLP or Ltd) is relatively (read: super) easy, so I would suggest you start a company. LLP has its perks and you might want to discuss with an accountant or a lawyer regarding which one is more beneficial in your specific circumstances, since I couldn't tell with the amount of info shared here (which is a good thing...).

50cent · Feb 2, 2015

you have 2 options

1. either get a share in his company..splitting shares 50/50 is piss easy. you just need to complete the correct paperwork and submit to companies house.

2. start a new company, with him as a partner. But if you do that and his other company has the same business interest then he may as well close that, otherwise may can run into conflict of interest issues when he has 2 companies running trying to do the same thing.

An accountant will get this sorted for you no problem. Its not hard. as i said, submitting shares in an existing company can even be done yourself, just g00gle it.

cheers

JadMac said:
Nope, the other individual has a limited company already while I'm a sole trader atm....would would you recommend?

JadMac · Feb 2, 2015

What if has other sites in his company that he obviously doesn't want me to be part of?

50cent · Feb 2, 2015

Then you are better off starting a new company. its much "cleaner". Admin of 2 companies shouldn't be a worry for you. Accounts etc is the accountants job, it won't be too hard for him to look after 2. It is not uncommon for people to have more than 2 companies.

JadMac said:
What if has other sites in his company that he obviously doesn't want me to be part of?

JadMac · Feb 2, 2015

Thanks, so is the actual website name etc held under that newly formed company name? I'm sure I'll find out once I go through the process but just want a rough idea in my head.

50cent · Feb 2, 2015

Yes they will be under the new company as long as your accountant has done things right.

JadMac said:
Thanks, so is the actual website name etc held under that newly formed company name? I'm sure I'll find out once I go through the process but just want a rough idea in my head.

JadMac · Feb 2, 2015

Thanks for your answers

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