Hello,

I am in talks with another to setup a company. The other person has experience and contacts in this field. We meet up once a week to discuss the plans. We have agreed to set up a company.

He says he has a bad credit and cannot form a company and wants me to form a company. He is keen to get started and has already linked up with his contacts to partner with them.

My question is what should i be careful of and how to share the income from the biz. From legal point of view i am thinking liabilities and what should i watch out for. Are there any loopholes here, is it ok and how to draw up roles and issues with money. Just wandering what could go wrong. I have told him i cannot fund much just very basic. So i guess he wants me as a director of the company to be formed.

I just want to know how to better protect myself, are there any pitfalls here and hope i am not being used for something happening down the line. what should i be aware of.

Your thoughts and advice much appreciated.

thanks