What kind of partnership should i opt ?

Discussion in 'Growing and Managing a Business' started by businessbee, Dec 3, 2013.

  1. businessbee

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    Dec 3, 2013
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    I live in North America, and I want to enter into a business with one of my cousins in India. As he cannot invest capital, he has asked me to contribute 100% towards the investment capital. Secondly, I will be the sleeping partner (not involved in any day to day operations), and he will be managing the business in India. He wants a 50% cut on the profits. My queries on the above scenarios are

    1) What kind of company should we open (incorp, LLP, LP ??) .. he has suggested LLP, however i feel very insecure being 100% liable for my offshore investment which is 100%, where my partner does not hold any liability or has any impact whatsoever. How can i engage a legal responsibility for him, to take care of my investment, and be liable if in case the business does run as expected.

    2) He currently is also suggesting a 100% of my contribution on the working capital as well, which i don't feel comfortable on.

    3) If i am North America, how can i get the returns back into my bank account, are they any tax regulations ?


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