Starting a new business with partner/partners

[BillyTT]

Me and a friend are going to run a campaign in Indiegogo(Crowdfunding platform) for a product.
Supposing that we will reach our target, we will start a company for producing the product.
The money to be earned from Indiegogo campaign will be placed in a common company's account in the Bank.

Are there any ways to protect myself if the other partner spends the money on everything else than buying materials and spending the money on stuff not related with the product?
There are various examples with people getting the money form a crowdfunding campaign and spending them in car/houses/strippers etc etc...without producing a product...

 

[quincy]

Me and a friend are going to run a campaign in Indiegogo(Crowdfunding platform) for a product.
Supposing that we will reach our target, we will start a company for producing the product.
The money to be earned from Indiegogo campaign will be placed in a common company's account in the Bank.

Are there any ways to protect myself if the other partner spends the money on everything else than buying materials and spending the money on stuff not related with the product?
There are various examples with people getting the money form a crowdfunding campaign and spending them in car/houses/strippers etc etc...without producing a product...

What is the name of your state, BillyTT?

If you have some reservations now about how your friend/partner might spend the money raised to produce your product, are you sure you want to be in business with this person? Trust between partners is fundamental.

If you can provide your state name, we can provide you with advice and information on protecting yourself as you start and operate your business.

 

[BillyTT]

I am not in the States, I am in Greece...

well, we are going to post the project in Indiegogo, but you never know what's in a man's mind!!! In every case I think I should have myself covered.

Supposing we open a common bank account for the company, I must make sure that the company would not be charged unrelated expenses...

My friend is very creative, but as far as I know him, before he was unemployed, he used to spend much of his money at bars/clubs and not saving money at all...

 

[quincy]

I am not in the States, I am in Greece...

well, we are going to post the project in Indiegogo, but you never know what's in a man's mind!!! In every case I think I should have myself covered.

Supposing we open a common bank account for the company, I must make sure that the company would not be charged unrelated expenses...

My friend is very creative, but as far as I know him, before he was unemployed, he used to spend much of his money at bars/clubs and not saving money at all...

Ah. Greece.

Well, BillyTT, FreeAdvice handles US law questions and legal concerns only. Sorry. You will need to find assistance with your business in Greece.

The only advice I can offer you is to be wary of going into business with someone with your friend's money history.

Good luck.

 

[adjusterjack]

My friend is very creative, but as far as I know him, before he was unemployed, he used to spend much of his money at bars/clubs and not saving money at all...

If you're not capable of starting and running this business without your questionable friend, then don't do it.

"He travels the fastest who travels alone" - Rudyard Kipling.

 

[justalayman]

"He travels the fastest who travels alone" - Rudyard Kipling.

"he who travels with a slower friend escapes the mouth of the attacking lion" - me

 

[adjusterjack]

"he who travels with a slower friend escapes the mouth of the attacking lion" - me

If your friend is faster than you, shoot him in the leg.