How to write a business contract between friends?

Question by JT: How to write a business contract between friends?
my friend wants me to invest into buying a business with him, with an investment of 25k. The Business is already established and from the looks of the books we should be able to re coop the initial investment after the first year. I am no accountant so i just want to be cautious. He will run the business and i will be a silent partner. How do i go about writing a contract and protecting myself because lets face it 25k is enough money to turn friends to enemies.

Best answer:

Answer by Ev-ian
I think you should back out! It will eventually ruin your friendship in my opinion. Help him find an alternative investor and put your money elsewhere.

(Failing that -if you really want to go ahead, get it written up by a professional…that will avoid awkwardness. The professional will make sure if it goes belly-up the pain will be at a minimum!)

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