How to Start an Assisted Living Business with a Partner

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Thinking about starting an assisted living business with a partner? 🤝
Good idea! Teaming up can help you move faster, split responsibilities, and grow bigger — together.

But you need to know how to set it up the right way.
If you skip a few steps early on, it can lead to big problems later (trust me, you don't want that 🚫).

In this post, I’ll walk you through how partnerships work, how to pay each other, and how to protect yourself financially, so you can build something amazing with your partner.

Let’s dive in! 🚀

Check out this video, too:

Why It Matters

Working with a partner is exciting — but it’s important to:

Set clear rules from the beginning (create an operating agreement) 📜
Know exactly how each partner gets paid 💵
Avoid future confusion, arguments, or tax headaches 🧠

✅ The right setup keeps your partnership strong and your business growing.
✅ The wrong setup... well, it can get messy fast.

Step 1: Decide How Partners Get Paid

When you start an assisted living business with a partner, you have two main ways to pay yourselves:

1. Guaranteed Payments 💸

Regular payments (like a salary)
Paid monthly or at a set frequency you decide
Paid no matter what — even if the business isn't profitable yet

Tip: Guaranteed payments are a smart move if you or your partner are working inside the business every day, handling operations, caregiving, marketing, or admin tasks - just make sure the business has the money to pay you.

2. Distributions 📈

Payments based on profits only
Typically paid quarterly (every 3 months)
You get paid only if the business makes money

Tip: Distributions are a great reward when the business is doing well — but there’s no paycheck if profits aren't there yet.

Step 2: Set the Payment Schedule

As business owners, you get to choose:

How often guaranteed payments go out (monthly, bi-weekly, etc.) 📅
How often you pay out distributions 💵
How much each partner receives based on their roles and ownership share

You can even mix the two:

A small, steady guaranteed payment each month to cover basic living expenses
Bigger, exciting distributions when profits roll in! 🎉

The key: Be clear and write it down. Everyone should know what to expect and when.

Step 3: Talk to an Accountant 🧑‍💼

This step is super important — do not skip it!

An accountant will help you:

Structure your payments correctly from Day 1 📚
Set up the right tax strategies to save you money 💰
Protect your business and personal assets 🛡️

There are smart ways to balance guaranteed payments and distributions to lower your tax burden — but you need a pro to guide you.

⚡ Quick Tip: Accountants can also advise you on how to structure ownership percentages, set up your LLC or partnership agreement, and make sure you stay compliant with state and federal rules.

Step 4: Plan How You'll Use Your Earnings

Once you and your partner(s) start getting paid, you’ll have options:

🚗 Buy that dream car or 🚤 get that boat

💼 Reinvest back into the business for future growth (probably my favorite)

❤️ Donate to local nonprofits and make a bigger impact on your community

Many of you aren’t just in this for profits — you're in it to create real change.
Setting your partnership up correctly allows you to make money AND make a difference. 🌎

Bonus: Donating to nonprofits like Boys and Girls Clubs or local charities can even give you extra tax benefits!

Next Steps: Take Action Today!

🚀 Want to launch your assisted living business in the next 12 months?

✅ Step 1: Download the Business Plan Checklist to start planning.
✅ Step 2: Apply for the Assisted Living Investing Mastermind for expert coaching.
✅ Step 3: Follow this guide, take action, and bring your vision to life!

Got questions? Drop them in the comments below! ⬇️

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