Small Business Startup Help

So I have a few things that I needed insight on when it comes to opening a business. Right now I feel like I have come across an opportunity that I would be dumb to let pass up. I just want to make sure that if and when I do it I go about it the right and legal way.

There is a nearby manufacturer that I wanted to buy products from and resell at shows, conventions, and online. As of right now I am in school so that would be all that my time allows. The reason I wanted to do this is because I would pay the same price, and sometimes even less, than bigger stores (Walmart, Home Depot, etc). Without as many overhead costs as them I would be able to offer products cheaper than they do to consumers.

The plan was to start with a small investment of $2,000-$3,000. I would be starting it with a friend, but at this time all the capital would be coming from me. An LLC was on our minds but we were not 100% sure if that is the route we should take. We were also wondering what licenses and things of that matter we would need to acquire to operate it under state and local laws (we are currently in Illinois). Our main costs would come from storage, transportation, and vendor fees (which are very minimal). It would be ran out of one of our houses, although we were wondering if we would be able to use the address of whatever storage unit we choose.

Another concern of mine was the capital and profit split out of it. He says that 60/40 in my favor seemed fair, but I truly don't believe so because I would be the one with more risk from the start. All he is offering is time and manpower. He also owns a truck which we would not need, but would help to transport the products. I am the one who has the connections with the manufacturer to get us great deals. He just doesn't have the capital at this time, but in the future he plans to assist with capital. What I had in mind was a smaller percentage and at any given time he can purchase his way to an even split of the profits.

What do you guys think? If you need any more info just let me know.

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