How do we split profits for our startup?
December 20, 2006 8:01 PM Subscribe
SmallBusiness Filter: I need help with how my business partners and I get paid.
posted by xyberspam to work & money (3 answers total) 1 user marked this as a favorite
My partners and I have formed an startup LLC to do one line of work. Partner A has expanded into another line of work. While this is a good thing, since he does a majority of the work, he wants 80% of the profits. Partners B and C just provide the tech support and money to run the operations, so they get 20%. A needs the money to live, while B and C are taking their cut and reinvesting it into the company. How do we make this situation work for the company? We had planned on not taking any pay from the company until at least 6 mos. out, now we have to give a significant portion away, leaving us to wonder how to ensure that the business can grow. I hope I have related this clearly, and if not please ask me more questions so I can explain more. Help me hive mind, your my only hope.