Best Way to Form a Business with Limited Partner

I have singlehandedly created a popular website and social media page that I plan on turning into a business. Some of the ways I plan on making money is through advertising tourist destinations, creating media content, selling merchandise, and giving walking tours. I need advice because I have a friend who is partnering with me for the tour part of the business. I was ready to create a sole proprietorship because I have done everything by myself, but now that I have someone who is partnering with me on this specific part of the business, I don’t know what the best way to form this business is.

Personally I would suggest trying to avoid a partnership. If you do go that way be sure to have a really good partnership agreement that spells out all details.

Partnerships have the highest failure rates just because of conflicts in how the business is run. a business runs better with someone running it and so often the two partners end up fighting a lot.

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If you are very sure about starting a sole proprietorship, then go and disclose your friend whatever you have decided. Partnership requires a written or mutual deeds among the partners and in absence of that, you are not bound to include your friend as a partner. Don't worry, move on!

Do not form a general partnership (think sole proprietorship with 2 people). Both partners will wind up having full authority and can commit the other partner to anything and everything, including verbal agreements, without the knowledge or agreement of the other.

You want either a limited partnership, LLC, or Corporation.

To form a limited partnership, you have to register in your state, pay a filing fee and create a limited partnership agreement, which defines how much ownership each limited partner has in your company, and other terms of the partnership.

That is awesome! I personally would try to avoid a partnership unless it is necessary. You have already come this far on your own with your business!