The Catering SiteWhat Do You Want To Know About Catering?

When you first start up your Catering business you may think that you will the sole proprietor – after all being your own boss is often the way to go. However you may soon discover that a limiting factor of your operations may be your cash – you’re available funding. Having more cash available means a greater reach to your operations and greater availability for funding for equipment, staff and promotion of your Catering operation. In sum you may find that without additional partners your catering operation is limited in growth.

How do you go about setting up the partnerships? What are the accounting and legal setups and limitations? To being with, business partnerships are seldom if ever formed as if the two or more people involved were sole proprietors. It may seem that way; it may seem to work out that way in reality. However partnerships are seldom ever structured this way – either in a legal or accounting manner. In some cases a so called “limited partnership” may be formed. In a limited partnership liability to the owners is limited. The company owns the company. Debts are to the company not to you – the owners. This way if the business unfortunately fails – the bank or whoever can only claim the assets of the company – not come after you and take away your house and car.

The best advice if you are planning to set up a business partnership is to prepare everything ahead of time on paper, both for yourself and the other partners – what the objectives are , what the shared responsibilities should be , the assets and costs. Plus any other additional questions. Present these with both parties present at a competent lawyer of your choice. By preparing ahead of time not only will it be less confusing for the legal staff, the issues and the work ahead of them will be made easier, with less mistakes or changes along the way. Ultimately there will be less cost and less problems for setting up the partnership. You can be assured that everything is done properly, that mistakes are less likely to creep up over time. If a proper foundation is built, in terms of the partnership contract and contractual agreement it can be added to or amended later easily and with less cost than if done shabbily and with haste in the beginning. In addition it could well be a good idea to utilize the services of a good accountant with which you can develop and ongoing working relationship. Like the lawyer and the legal documents have the accountant set up an accounting system – that will satisfy the requirements of the iris.

Government taxation, licenses and fees as well as insurance liability questions used not to be a major focus of business. The business of business was to do business and at the end of the year report a profit. Not so today. It seems that many businesses are in business solely to pay their taxes and license fees. Being a partnership both parties are held legally responsible for taxes and license fees and mistakes involving these. Again as with a legal concern – who needs unnecessary and preventable aggravations which impair your ability to serve your customers and business – in this case the business of serving your catering customers the best wedding banquet or reception you possibly can.

Ditto all of this for questions of insurance and legal liability concerns. It cannot be overstressed that each decision that you make carries state, federal tax, insurance and legal liability ramifications. Just as in the case of the lawyer and legal planning and implications it is best to involve a competent accountant or accounting firm in the setup and planning stages of your catering operation partnership plans and executions.

It has to be remembered that the whole purpose of your catering operation is to provide excellent catered meals to your clients. If a partnership affords you more funds and capital to do this great. If it provides more responsible hands to do the work and provide responsible supervision even better. Just remember to set up the foundations for your partnership of your catering operation – both in terms of legal and accounting terms, in a well planned, thorough and professional manner.

Morris E. Brown
King Cole Catering
http://www.planyourwinnipegwedding.com

Winnipeg Extended Stay Hotel Rooms

Winnipeg Catering

Easy Appetizers: Catering Tips : Make Pigs in a Blanket Appetizer