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Considering a co-owner when starting a business

| Jun 18, 2019 | Business Law |

Taking the step to open one’s own business is a major decision. Some Ohio residents may dream of starting their own company for years before moving forward with plans, and others may never feel that the time is right to follow this dream. In some cases, it may help individuals to consider the idea of having a co-owner for their business.

Co-ownership can certainly have its pros and cons. Having more than one owner could help lessen the amount of stress that would otherwise be placed on one person by dividing the obligations necessary for starting and operating a business. The division of financial and legal obligations also means that individuals can divide the benefits that can come from operating a successful company.

Of course, the division of responsibilities may not always work out as hoped. One owner may find him or herself less interested in the business and allow certain obligations to fall to the side. If this happens, serious problems for the company could result. In some cases, one owner may even feel the need to dissolve the co-ownership for the sake of the business, but legal action would be needed to do so.

When starting a business, considering the various types of entities is wise. It can allow interested Ohio residents to determine what structure may best suit their needs and whether having a co-owner or partner could work in the company’s best interests. Discussing more upsides and downsides of co-ownership with business attorneys may help future business owners better understand this option.

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