hey guys lookin for some input on how to run a partnership 75-25. my partner just retired from the military and is the 75% owner. I am still active duty and the 25 % partner. the problem i am having is how to split profits when we work the jobs 50-50. but he does all the leg work, estimating, bids etc. i dont feel that 25 % of the profits is fair, we can do hourly pay for both of us but then what do we do with the remainder. also we started as 50-50, so should he buy me down to a 25 % . I think i getting screwed but he does do alot more leg work than me.
They are no a publically traded corporation with stock holdersIf their in a partnership and it is in a corp. Do you have certs of stock ownership? If so its simple you split it 75-25 and the salary is what you guys agree to.
I dont think this is true. My business has been incorporated for years. I have an excellent corporate attorney who handles all issues related to corporate paperwork. I own 100% of my business. So far, I have not seen stock certificates. If I had them, I certainly would have sold them by now!If you have a corp. then you have to have stock certificates. Public or not.
Put that stock up for sale VP I'll take a fewI dont think this is true. My business has been incorporated for years. I have an excellent corporate attorney who handles all issues related to corporate paperwork. I own 100% of my business. So far, I have not seen stock certificates. If I had them, I certainly would have sold them by now!
I agree more with Bikerboy's response about splitting the net profit 75-25%.
it can't do worse than the ones I have now...
If you have a corp. then you have to have stock certificates. Public or not.
op
This really needs to be put down in writing because your biggest problem isn't how much your going to make but how much you ae going to lose if things go bad. If you both work in the business and have both invested the same amount into the business then you should be 50/50 partners. If one invested money in the begining and the other didn't, shares should be negotiated.
I will assume that you both put in equal money to start. So you should be equal partners for profit sharing. Compensation should be broken up into a sales commision for him plus hours of labor worked, then you should get a wage for your time. after the other expenses are paid then split the rest 50/50. You probably work while he is selling so he isn't really doing more than you, but rather different tasks.
If he has a problem, then you can mention that you should be compensated at a higher rate since you are the project manager,(because you are on site at all times).
yeah that was one I passed on! :blink:A corporation does not HAVE to go public, or sell stock. When they do go public, it is normally to raise capital for growth. Visa is an example. Did you know they just went public this year? If you had bought it when it went on sale a few months ago at around $55.00 a share, you would have made money already. It closed at $72.58 today.
Me too! I thought that with the credit crunch and mortgage crisis, I'd be throwing money down a black hole.yeah that was one I passed on! :blink:
Mine is an LLC. The house is safe. I have the best corporate attorney in my state, whose specialty is construction law. No worries. Stock or no stock. If we sell, its all just a pile of ladders just like anyone elses.Really its all a technicallity, but its the details that save your house if your corp is sued.
Mine is an LLC. The house is safe. I have the best corporate attorney in my state, whose specialty is construction law. No worries. Stock or no stock. If we sell, its all just a pile of ladders just like anyone elses.
Tony--I appreciate the compliment. how did that lead turn out?
hone:
