Branch Office

[byoung]

Jurisdiction

Michigan

I have a small business in SE Michigan that has done very well so far. I would like to expand in an area in Michigan that there is a need. This would require me to open a branch office. The question I have is I would like to open that branch office with a partner. I currently do not have a partner for my SE Michigan area and dont plan on having one anytime soon. Could I open a branch office in that area and keep the business name or do I need to create a different name, entity, etc?

 

[PayrollHRGuy]

Your primary issue will be the partnership agreement. You need a lawyer.

The name shouldn't be an issue.

 

[byoung]

So opening an office in a different location with a business partner shouldnt affect the other office with no partner? Figured I would get a lawyer for the partnership. thank you

 

[zddoodah]

If you want to have a partner for the new office but have that partner have nothing to do with the existing office, then you will need a very well-structured partnership agreement (assuming you're using the term "partner" in its proper legal sense, as opposed to colloquially) and will probably need to make modifications to your accounting practices. The first response is correct: you need to retain the services of an attorney.

 

[adjusterjack]

So opening an office in a different location with a business partner shouldnt affect the other office with no partner? Figured I would get a lawyer for the partnership. thank you

Why not just hire an employee to run the new office? Sure, you'll have costs (WC, UI, payroll taxes) but that cost will buy you the luxury of being able to fire the guy on the spot if he doesn't work out.

A partner, OTOH, will own part of your business and be a lot more difficult and costly to remove if necessary.