Hello everyone, fellow Canadian here. I am in a bit of a bind. I started earning money from a website a few months ago, and at first it was only a few bucks a day... nothing serious! however now its more so becoming $20-120 USD/day (depends on the day) for subscriptions among other things. (its for an online game) I am working with someone who is from the UK, 50|50. All transactions have been done and completed through Paypal, while advertisement is done 100% through Google Adsense (which seems to be getting us $200-300 USD/month alone). My Question is, What do I do next? I think I kind of jumped into the fire before putting on my gear. Me and my partner have plans to expand and make another few websites from this (of the same model/design), but before doing so we need to figure out what to do. Though I may be a good programmer/designer/marketer, my business/legal ethic is rather spotty at best. Do I set up a business? Partnership? LLC?
LLC's are usually what you use for foreign partners. I would definetly go that route and look into having a legal contract written up that outlines your agreements, proceed terms, and other information that will help protect you, your partner, and your company.
I hate partnerships.. They never seem to work out.. If it were me, I would set up my own company and then pay the partner 50% of the profits on a 1099 basis (Assuming that is your deal).. Sign a contract with him stating the details of the arrangement, but don't give someone 50% of your company.. If this is going to be an ongoing development collaboration, then the next project he can own the company and pay you 50% if he wants.. It really saves on a lot of paperwork by not having partners..
Well, I intend to stick with this partner for quite some time. We get along great and work pretty well together. We intend to start more games together (like the current one) while continuing to develop them. I take it then that there is a lot more paperwork for partnerships?
Yes, there is more paperwork with partnerships.. And every partnership I've ever had started with someone I liked and trusted.. And every one ended in tragedy and thoughts of murder