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Got a little news at work today.

Discussion in 'The Lounge' started by Corey 78K5, Sep 22, 2004.

  1. Corey 78K5

    Corey 78K5 1 ton status

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    First off I'll explain what it is I do for those of You who don't know. Basicly Im the manager of a towing company and We also have a wrecking yard with parts sales.
    The towing part of it is great and makes a lot of money and I have a new 04 International that I drive. The wrecking yard is not a real favorit of mine. It cost a lot to run and there are a lot of problems. Just to give you an ideal all fluids must be drained and one gallon of gas cost $5.50 to get rid of and We drain a couple hundred gallons a week. So for what You get out of parts and scrap metal it just aint cutting it now days with all the new laws.
    So My Boss asked Me what I thought about getting rid of the wrecking yard and just doing towing. I told Him that I thought it sounded great. We added up a few things off the top of our heads that would save Us around $2000 a month and thats just little things with a lot more that can be cut for more savings. Then He asked Me if I wanted to be a 50% owner with out putting in any money /forums/images/graemlins/shocked.gif I was pretty floored. We make an average of $9,000 a month on just doing our CHP tows. Not to mention We also have our insurance contracts to do and private (cash) tows on top of it all. All the property and trucks are paid for besides the International which is only $778 a month and. Our insurance will drop big time, so the profits could be big time.
    Since We wont be running the wrecking yard anymore. We're gonna lease out half the property. Which could cover the truck payment and insurance. We just got a new 40x40 metal shop building (not yet erected) that was gonna be used for our tear down shop. My Boss said that He still wants to put it up and That We could use it for our own personal rides /forums/images/graemlins/thumb.gif
    I think it's a good thing for Me. All I would have to do is drive and when I wasn't doing that I would just kickback and do what ever else I wanted and pretty much be My own boss.
     
  2. big pappa b

    big pappa b 3/4 ton status

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    Kinda hard to pass up half of a business for free. Just make sure you're not going to get tapped to pay some outstanding bills\

    Other than that sounds like a good deal
     
  3. Corey 78K5

    Corey 78K5 1 ton status

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    No out standing bills other than the truck payment and that always comes off the top. The company has been going for the last 10 years and has never shut the doors once. If anything is bought in the future then I will be part of that.
     
  4. hi pinion

    hi pinion 3/4 ton status

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    Almost sounds to good to be true. /forums/images/graemlins/ooo.gif If you know the guy though , and you trust him,check into it, and if everything looks good, do it. What do you have to loose?Just dont sign anything, and be a silent partner.Dont sign anything. These owners want to make money off your back though, remember that.I dont know is the guy in the feild with you> Most of the time owners just sit back and do nothing and expect money to roll in..If it is straight do it Corey.Minimize cost and maximize profit. Another thing you could do would be go on your own...with your own truck/forums/images/graemlins/thumb.gif
     
  5. Corey 78K5

    Corey 78K5 1 ton status

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    I'm not worried Jake. He's a good friend of mine as well as My familys. He has to cover His days and nights just the same as Me since were open 24/7 and He always has. He told Me that He has always had a hard time finding someone that He wanted to keep around that knows how to do the job and that could handle it. So He says that He wants Me to be His partner to to make a better company. When He first hired Me He told Me that He would pay Me $100 a week more than My last job. Well He did that for about 2 months then He started paying Me $250 more a week than My old Job. So I feel it's right and I trust Him.
     
  6. hi pinion

    hi pinion 3/4 ton status

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    then go for it /forums/images/graemlins/thumb.gif just lookin out for ya /forums/images/graemlins/waytogo.gif money money money /forums/images/graemlins/peace.gif /forums/images/graemlins/thumb.gif
     
  7. big83chevy4x4

    big83chevy4x4 3/4 ton status

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    thats awesome news /forums/images/graemlins/peace.gif /forums/images/graemlins/waytogo.gif
     
  8. bigyellowjimmy

    bigyellowjimmy 1/2 ton status

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    Congratulations! Sounds like a great opportunity for you /forums/images/graemlins/thumb.gif

    /forums/images/graemlins/usaflag.gif
     
  9. newyorkin

    newyorkin 1 ton status

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    That sounds great, I'd hop on it. Just make sure he's not expecting anything different from you, he may be getting tired of bearing the whole company, and if he makes you a partner he can split the load of running it with you. Pretty awesome deal... Also, make sure if you set up a contract, you protect yourself and don't end up with a clause that says you get nothing if you leave in 5 years (or something, just throwing out the other half). You're entering with nothing, so you've nothing to lose, just make sure your sweat equity will count for something in the long run. Sweat equity is probably what's getting you the opportunity here, too.

    [ QUOTE ]
    So He says that He wants Me to be His partner to to make a better company.

    [/ QUOTE ]

    It sounds like you and he have a pretty strait arrangement and relationship already, so I (personally) wouldn't be terribly wary of becoming a partner, but just for formalities sake, cross your i's and dot your t's...

    Cool deal /forums/images/graemlins/waytogo.gif .
     
  10. SkulzNBonz

    SkulzNBonz 1/2 ton status

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    Wow, good deal /forums/images/graemlins/peace.gif

    John
     
  11. 1-ton

    1-ton 1/2 ton status Premium Member

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    You might want to see how much debt the company has because if you become a legal partner, you also assume that debt as well.
     
  12. pauly383

    pauly383 Daddy383 Staff Member Moderator

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    Sounds great /forums/images/graemlins/waytogo.gif But just in case , friend or not , get it all down on paper , it will protect you and your family /forums/images/graemlins/thumb.gif
     
  13. k5-newbie

    k5-newbie 1/2 ton status

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    i agree with Pauly...and wish you the best of luck /forums/images/graemlins/thumb.gif
     
  14. Skigirl

    Skigirl 1/2 ton status

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    Check out the structure of the company, and do not do a partnership. Either do an LLC or LLP, with your shareholder interest under the umbrella of another LLC. That way any liability is limited to the corporation and not to you personally. Anytime you are in a partnership and it's not an LLP, you can be personally liable for everything that happens with the company. Go see a good corporte lawyer. And consider forming your company that goes into the partnership in Nevada or Wyoming.
     
  15. newyorkin

    newyorkin 1 ton status

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    Why Nevada or Wyoming? I have to form a corporation very soon, I didn't even think of looking into different states...
     
  16. Stomper

    Stomper ΜΟΛΩΝ ΛΑΒΕ GMOTM Winner

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    Nevada and Wyoming have "Tax Free" Incorporation
     
  17. bigyellowjimmy

    bigyellowjimmy 1/2 ton status

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    [ QUOTE ]
    Why Nevada or Wyoming? I have to form a corporation very soon, I didn't even think of looking into different states...


    [/ QUOTE ]

    NV and WY share very little info with the Feds creating another layer of protection for the Corp. NV shares the least /forums/images/graemlins/thumb.gif
     
  18. js4x4

    js4x4 1/2 ton status

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    Friend or not, get it on paper. To include all debts and profit. You don't wanna get screwed, and your buddy will understand if he's business savvy....he wouldn't just leap into something to get screwed over either. Get a lawyer to look over all the documents so he can assure you the i's are dotted and the t's crossed. Just my 0.02, but if hes a true friend he'll understand....because even if your a partner in name only...you share liability.
     
  19. surpip

    surpip 1 ton status

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    [ QUOTE ]
    Check out the structure of the company, and do not do a partnership. Either do an LLC or LLP, with your shareholder interest under the umbrella of another LLC. That way any liability is limited to the corporation and not to you personally. Anytime you are in a partnership and it's not an LLP, you can be personally liable for everything that happens with the company. Go see a good corporte lawyer. And consider forming your company that goes into the partnership in Nevada or Wyoming.

    [/ QUOTE ]
    really really good advice, my buddy is beeing broung into a company that has done that they do very well for themsrlfs!!! good luck man!! rock on /forums/images/graemlins/peace.gif
     
  20. Corey 78K5

    Corey 78K5 1 ton status

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    [ QUOTE ]
    Check out the structure of the company, and do not do a partnership. Either do an LLC or LLP, with your shareholder interest under the umbrella of another LLC. That way any liability is limited to the corporation and not to you personally. Anytime you are in a partnership and it's not an LLP, you can be personally liable for everything that happens with the company.

    [/ QUOTE ]
    Thats already in the works. We want to set it up so that neither one of Us are responsible for the others debts before the partnership is final. Were also gonna make it so that If someone screws up on the job the company would be sued but not any of the owners/employees. This will all be done next week so that it's not put off. Besides I have had access to the checkbook for sometime now and other than one truck everything is paid for. Not to mention I do a lot of the billing and paying bills Myself so I know whats going on.

    [ QUOTE ]
    And consider forming your company that goes into the partnership in Nevada or Wyoming.

    [/ QUOTE ]
    Why in the world would We want to do that /forums/images/graemlins/confused.gif The company is already a well known company in the area. We have two contracts with the CHP so We have twice the area of any company in the county. We are located in a big tourist area (Redwood national park/Avenue of the Giants). So there is no shortage of work. Besides We ain't like all of You Southern California people /forums/images/graemlins/wink.gif /forums/images/graemlins/tongue.gif We actually like where We live and dont have all the overcrowded problems like there is down south /forums/images/graemlins/deal.gif Besides there is no ocean in those other places /forums/images/graemlins/whistling.gif
     

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