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HELP for multiple business partners!


There are 3 of us that are wanting to start this business up. We are trying to figure out how to make the payments work between us. For instance, if one gets the order and another actually fills it, how do you divide up the money? So confused, want it low key and NOT stressful!

If you have multiple business partners and can shed some light on this, that would be GREAT! Thanks so much, in advance!

6 Responses

How do you mean "if one gets the order but another fills it" ?

On Etsy, all orders will be sent to the email & paypal accounts associated with your shop. How you deal with them after that is upto you

I would think that the person who makes the item ordered should get paid for it!

Is there any particular reason you are wanting to set up a joint business rather than each setting up an Etsy shop separately?

Depending where you are located there may well be tax implications of sharing a business --eg all payments to the business may be considered as income for the person named on the account, with disbursements to others as expenses
Nice as it sounds to want to be mellow about it, business partnerships are more likely to be successful and "low key" following a whole lot of preliminary work involving detailed written partnership agreements that have been reviewed by a lawyer specializing in such things. Depending on where you are, there are all sorts of laws, licenses, and tax regulations involved. Ignoring them can result in more stress than dealing with them before jumping into the "fun" part.

It's nice your all friends now, but will you be if someting goes wrong?
First off there are tax issues, the one the business name is in will get taxed and added to your income.

The only fair way I should think would be to add everything up and divide by 3.
Now the person making that item is just going to give up his skills and time?
Or you could each individually keep track of your own transactions ..

Why in the world do you want a 3 some anyway, you could each have your own with no charge...?

Lot's to think about/
Low key and not stressful? I missed that one?
No such thing and if there are 3 your in for a ride/
Partnerships are not known for their being low key--it's more complicated than a sole proprietorship both organizationally and for tax purposes.

I'd vote for going with 3 sole proprietorships and working to support each other's businesses--share a blog that features all of you and use advertising to direct traffic to all three of you through it, or each have a blog to sharing cross-promotion, use the power of multiple people to make bulk purchases for shipping supplies and the like, keeping records of how the costs are split...

You might be able to get better insight into partnerships by making an appointment with your local SBA office:
i am in a partnership we have a state license for the two of us though on etsy we have our own shops and deal with shipping independently and we help each other promote we get together once a mo to discuss taxes (have to file every mo in my state) and we do craft fairs together we figure out the taxes owed by each of us and keep profit from our own things selling except for the 50 cent bracelets that we both contribute to we split that 50/50

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