Why Partnerships Stink
Sean and his partner are about to shoot a film, and Dave gives him the lowdown on why he doesn't like partnerships.
QUESTION: Sean and his friend are about to shoot a film, and he wants to know how to make the partnership with his production company. They’ve got the investors to cover the budget, so they are not putting anything in themselves.
ANSWER: I would not have the 2 of you in partnership. Get an attorney to work this up. I would have 2 separate companies working as a joint venture. If something happens and someone gets hurt or divorced, you don’t want to be in a partnership with the other guy’s wife. If one of you bails, the other one needs to end up with it. That’s why I hate partnerships.