CNNMoney.com ends the month with a great look at the do’s and don’t’s of running a business with your significant other.
This article is a must read for anyone thinking of doing it, and much of the information and advice here is also applicable to those whose business and marriage are NOT running on the same rail. Pearls of wisdom include:
- Detail who is responsible for what, to the point of legal documentation.
- Have the lower-income person “take the leap” and quit their corporate job first. Putting all your eggs in one basket can be a risky bet.
- Shield your personal property from your business in case of failure (one of those for-singles-too bon mots).
- Make it fair:
If you do go your separate ways someday, you won’t want to have lost ground in your own career or retirement savings. It’s a bigger problem for women: All too often, couples working together fall into stereo-typical gender roles, with women doing the bulk of the support work, says Kathy Marshack, a psychologist and author of “Entrepreneurial Couples: Making It Work at Work and at Home.” So keep developing skills that you could later apply to a corporate career.
And pay both partners a decent wage. “I am still shocked at how many women in these businesses agree not to take a salary,” says Marshack. Some couples opt to pay one spouse far less than the other to save on self-employment taxes (currently 15.3%), but if you forgo an income, you’ll reduce the size of the Social Security benefit that you’re entitled to - and you’ll undermine your sense of worth in the business.




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