What to do if I am starting a business and want to give my marketing director 25% of the profits?

I am starting a business and want to give my marketing director 25% of the profits.I would also like to give her 25% of the business but I don’t want her to have any liability. This will be a sole proprietorship. Is it possible for her to have partial ownership with no chance of liability?

Asked on July 11, 2012 under Business Law, North Carolina

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

I would speak with an atorney about how to set up this agreement with your marketing director.  And part of that would be a hold harmless agreement as to liability and also discussing listing them on your liability insurance.  An "owner" by definition would have liability for actions taken in the business.  So it must be properly structured.  Get help.  Good luck.


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