How to set up an equitable partnership arrangement?

UPDATED: Apr 16, 2013

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Apr 16, 2013Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

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


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 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%.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption