Can 2 people in 2 different states run 1 business?

[Joyfullyblessed]

Hello,

 

I am not sure if this would ever work, but I thought I would ask and see what kind of responses I get.

 

My friend and I would love to create a business together, but we live in two different states (not neighboring states). We would be creating our own handmade items to sell. An Etsy shop is one thing we are considering, but I am still not sure that would even work. Any ideas?

 

This may be something that we just can't do right now.

 

Does anyone know if this is possible? If so, how? I am looking for any good advice on this matter please. Thanks so much and have a wonderful day! :)

[LaxMom]

Why would it not? I'm just thinking through the logistics of an etsy shop.

You post listings of what you've made, people order them & pay through PayPal (so payment is tagged to an order, making it easy to see who gets what), the person in possession of the item ships it out... Unless Etsy has rules against shared endeavors (and I don't think they do), I'm not sure I see a problem.

[Joyfullyblessed]

Well, I really don't know. I have never done this before and that is why I am asking the question. I think I am mainly trying to figure out the whole process of doing this business. It is all new to me. :)

[LaxMom]

Hmmmm... Well, can you give us more details? Will you each be contributing individual items for sale, or would you each be doing part of a single sale item (like each contributing to a gift basket)? Because the logistics would be totally different given what the end product is.

 

It IS possible. I think the questions is more whether it's logistically feasible.

[amy g.]

We have an unofficial partnership with dd's best friend. She is in the same state, but a different city.

 

We have different products, that go together, so we both sell both products. She markets our products in her city, and does not take a cut when she lands a big wholesale account.

 

We market her product here alongside our own, but don't charge her for doing so.

 

Every Saturday, we paypal the other person the money from the product they made. Each of us pays for our own raw materials.

 

We have an agreement that anyone can leave the partnership at any time for any reason with no hard feelings.

[Bang!Zoom!]

Call the local SBA and ask for an appt.

 

They have a ton of resources and free training for business start up.

[Tina]

Tax wise, you'd have to pick one state where the business is located and register and pay all your taxes from there. Both states may need some taxes filed, too. If it's set up as a partnership with both of you earning salaries, it might be doable. I think you'd have to check with an attorney tho. (Dh is self-employed and I do the bookwork. ;) )

Edited April 26, 2012 by Tina

[Mama Geek]

I would try to find a good lawyer and a good accountant to help you get set up.

[Joyfullyblessed]

Thanks, everyone! :)

 

Tbog: Can you please share some of the most important things that need to be taken care of in order for us to do this possibly? Any great advice, suggestions, etc... Any would be very much appreciated. We are just wanting to start out small and slow, see what happens and then go from that point.