Legalities of opening a grooming dept. in a kennel

[ltljon93]

Hi everyone,

I will be opening a grooming department in an existing boarding kennel when I retire from the military. My Mother-in-law bought the kennel in MA to leave to her daughters. There is currently no groomer. I decided to go to a grooming school here in CA in a 600 hour course. I will be purchasing most of my equipment from supergroom in September. Mom wants us to purchase the house that is on the property which will cut the mortgage of the kennel by 200,000. My question is, would it be legal for me to take 100% commission for all grooming and bathing without paying rent? She does not want to charge rent since we are cutting her mortgage. I am even thinking of taking a portion of the commission to pay for utilities the grooming department would be using. Basically, I would run, but not own the grooming department even though it was my idea and I am supplying all the equipment and services. Mom and I are coming up with a contract and she is in agreement.

[Helly]

Even though this is all in the family, or maybe more importantly because it's family, you really need to run your contract past an attorney to make sure everything done legally. And your question will be best answered by an attorney anyway. So that would be my advice; get an attorney to hash out the details.

[sheilabgroomer]

Ditto what Helly said!!! Get a lawyer and let him/her work out the fine and legal details. Hopefully you will be able to keep family and business separate so that relations are not effected.

[ladycee]

Another Thought....

Before you go through all that, check with your city and county to find out if you need permits or license required (depending on where you are). Nothing worse than going through all of that, then finding out the city and/or county will shut you down. Also, check with a tax person about in lieu of paying rent vs. mortgage if you are going to be a self-sufficient department within the kennel. Find out what you can write-off on taxes and what can't. If you will be running it and not an owner, wouldn't you be an employee? Be careful of the independent contractor vs. employee. That can be a very thin line.

Food for thought!

[ltljon93]

Thanks

Thank you for your advice. I was wondering where I should start.