Should You Start a Small Business Jointly With Your Spouse?

It's a decision that could really go either way.

Starting and running a small business takes a lot of work. In fact, small business owners commonly put in more hours on the job than salaried workers because it's on them to run the entire show.

If you're interested in starting a small business, you may want a partner so you don't have to handle every single aspect of that venture yourself. And you may decide that your business partner should be none other than your spouse.

That's not automatically a poor choice. But it might also backfire on you. Here are the benefits and drawbacks of starting a small business with a spouse.

Pro No. 1: You know each other well

When you're married to someone, you develop a deep understanding of their strengths and weaknesses. That's something that could work to your advantage in the context of owning and running a small business. Let's say your spouse is extremely creative but not very organized. If you know that, you can make sure to have your spouse handle things like promotions and advertising while you stick to tasks like reviewing your business checking account and paying invoices.

Pro No. 2: You're both equally invested in your venture's success

When you run a business with a spouse, it's in both your best interest to have that company succeed. And so you can generally bank on your spouse putting in their best effort. A different partner might have other income sources to tap and may therefore not be as motivated to work their hardest.

Pro No. 3: You have a certain level of trust

It's important to trust the person you're partnering up with to run a small business. The good news is that if you're working with your spouse, that level of trust is already there, which means you're taking less of a risk.

Con No. 1: You may not enjoy working together

Living with someone and working with them are two very different things. Just because you and your spouse are able to coexist peacefully as romantic and life partners doesn't guarantee you'll do well as business partners. You might clash over certain decisions and butt heads when it comes to taking risks. That could make it difficult to run your business.

Con No. 2: Business-related stress might impact your relationship

Running a small business can be stressful. And when you and your spouse are deep in the throes of it, it has the potential to impact your relationship in a negative way. It might also result in a poor work-life balance.

Con No. 3: If your business fails, there's no backup income for your family

Let's say you decide to start a small business while your spouse keeps their day job, thereby bringing home a steady paycheck. In that case, if your business doesn't make money, you'll still have income coming in. But if your spouse quits their job to run a business with you and that venture fails, you'll be out of luck financially. That could force you into a situation where you have no choice but to live off of your credit cards until you figure out your next move.

Clearly, there are upsides as well as downsides to starting a business with a spouse. Make sure to weigh the pros and cons carefully before making your choice. And to be clear, this is something you and your spouse should consider together to make absolutely sure you're on the same page.