How to split business ownership fairly?
December 7, 2009 7:11 AM Subscribe
How should my business partner and I split the ownership and income of our start up?
posted by anonymous to Work & Money (16 answers total) 2 users marked this as a favorite
A parter (let's call him Bob) and I (let's call me Alice) started a business with no formal agreement regarding ownership. Currently, the business has minimal income and users. We expect this to change very soon.
Alice: Alice created the project in August '08. Alice has spent $1200 out of pocket on expenses.
Bob: Bob joined the project in June '09. Bob has spent $700 out of pocket on expenses, but is fine with spending the next $500 to equal this out.
Bob and Alice have each spent an equal amount of time working on the project each month that they have been working on it. So, Alice has been working on the project for 16 months and Bob has been working on it for 6 months.
What we want to know:
How should we split ownership?
How should we split income? We're interested in splitting the income evenly until we're each making a decent/living wage.
Alice and Bob have a completely amiable relationship. We're both interested in doing what's fair.