My boss has recently told me that he has to declare bankruptcy due to a massive client who never paid. He is offering me partner status in the next company and I could really use some outside advice. I’m 20, in college, and planned on going into sales. My business on the side hasn’t had any traction for a while due to my lack of connections, but my boss has consistently had work for my company since his network is huge. He’s s offering ownership in a new company which will have the services I offer, with his connections, as well as all of his contracts from the previous company, which is well into six-figures. I’d be bringing skills and labor to the table. He’d be bringing that, plus connections and current contracts/relationships.
Where do I start? This seems like a great opportunity but throws a wrench in my other plans. Any outside opinions, and questions are welcomed! I’ve never faced something like this and have no clue where to start.
Tons of red flags but there’s also a lot of nonsense in here about if he had money for the new business he wouldn’t need to declare bankruptcy. We seen this a ton during and near the end of COVID in restaurants. They closed for a week or two and suddenly are back open with the only thing changing is the name of the LLC on the business license.
Just because a business goes bankrupt doesn’t mean the owner still doesn’t have assets/cash. In fact it’s many reasons the business does go bankrupt because the owner pays themselves too much or the business “buys equipment” that in reality ends up being the owner’s. Depending on how long they’ve structured this and the business’s cashflow over the past years, it’s very likely the assets gained from the business won’t be clawed back by the court.