Starting an unofficial business

Discussion in 'Starting a Business' started by rhnaut95, Jul 1, 2016.

  1. rhnaut95

    rhnaut95
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    This may be a loaded question, but I'll try and keep as brief as possible.

    1 - Myself and two other people are partnering with a publisher to create a product. Although we will be working together to achieve the same goal, we are basically working as independent partners and will be paid individually for our work.

    I would like to identify our team as a business entity for marketing purposes. This will allow us to have a website, facebook page, and other tools to help market the product. Are their any legal ramifications we need to be aware of with this? Again, we're all our own separate partner, not an official business. But I'd like to market ourselves as a single entity.

    2 - I'm seeking advice on how we should split our earnings. At first I was all for splitting them evenly... But would I be selling myself short, since I came up with the idea for the product, and have been more or less calling the shots thus far? Since I'm more or less the lead, should I consider a 40%/30%/30% split? Does anyone have a rule of thumb to go by when deciding this?

    Thanks in advance!
     
  2. rhnaut95

    rhnaut95
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    Just to elaborate a bit more, we will not be taking on customers ourselves. This will all be handled via the publisher, so there's no reason we could ever get sued.
     
  3. Mike Levin

    Mike Levin
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    It really depends on relations with your partners and What exactly they are doing to maintain your project success.
    Usually good idea is to split earning equal, but do equal job as well. You can ask them to split incomes as 34/33/33%. So this will mean that you are a leader and your partners will be happy as well
     
  4. Joseph.Shivell

    Joseph.Shivell
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    I'm a little concerned about this. Your profile doesn't say where on "Earth" you are from, so this information only applies to the United States, and is usually handled by the individual counties or states. In order to market yourselves as a business, you would need to have a business name. To obtain a business name, you would need to have a business address, and would need to file a form which may have different names, but is commonly known as a "DBA", which stands for "doing business as". This form needs to be filed with the county clerk(which may be different, depending on the state), because it is a legal document. Once you file this form, you are now a legal entity, whether you wish to be or not. Depending on the classification, there will be other laws you will need to be aware of, and obey.
     

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