How to set up an equitable partnership arrangement?
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How to set up an equitable partnership arrangement?
My co-workers and I are attemping to takeover an existing business from our boss. Three of us are full-time employees and are willing to give 100% to this business. However, one is part-time (max 25 hours a week) and is not willing to give 100% commitment yet wants a full partnership share. How do we divide the partnership if the part-time employee is not willing to commit 100%?
Asked on April 16, 2013 under Business Law, New Jersey
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
Form an LLC and in the papers forming it, you can give each of you whatever ownership percentage you all agree on, based on a combination of hours available to work and monetary investment. For example: each full time person could get 40% of the business, while the part-timer gets 20%.
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