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Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

May/June 2024

Building a Successful Partnership

Building a Successful Partnership

Going into business with someone else requires more than just sharing good ideas. For a partnership to succeed, partners must make mutual decisions about the business’s structure, financing and conflict resolution.


On the Same Page?
As a first step, you and your partner should discuss your visions for the business. This might include a timeline for growth and potential changes in the business over time. Shifting goals and priorities may result in the need to restructure responsibilities and compensation in the future.


Where Will the Money Come From?
Partners should discuss sources of funding for the business, as well as strategies for raising money in the future. While taking out a business loan may be a viable option, both partners must agree to it. In some instances, one partner may have the personal resources to make a loan to the business. Partners should decide on the terms and draw up an agreement for repayment.


Choosing a Business Structure
Review the possible options for structuring your business. An LLC, S corporation and C corporation all have advantages and disadvantages. Your tax and legal professionals can help determine the best business structure for your situation. Also consider whether your business will be structured so that partners share expenses equally, while profits are divided based on each partner’s contributions.


What if Partners Disagree?
Differences of opinion are bound to occur, so consider having a plan for resolving disagreements. You may decide to designate one partner to make the final decision. Or you may want each partner to have final say in their area of expertise and then come together to make all major financial decisions.


Make Sure You’re Covered
Partners should invest in an umbrella insurance policy that includes liability, property and casualty coverage. Coverage for errors and omissions also protects you against claims of mistakes in professional services. Key person life insurance typically is purchased on the life of the owner(s) or another critical employee. The company is the beneficiary and uses the proceeds to cover the costs of hiring and training a replacement for the deceased person or to pay off debts and close the business.


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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
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