Sepia
11-02-2012, 06:41 PM
I'm in the process of forming a new partnership with one other person. The company is web-based and entirely built upon intellectual property at this point. There is no overhead whatsoever, and thus far, nominal out of pocket expense. I've just wrapped up a long-term project, so my partner has done a more work than I. She also brings a lot to the table in terms of contacts. We're in the process of structuring the finances and responsibility of the company. Here is what she has suggested:
*70 / 30 ownership: her to me
*50 /50 financial responsibility
*50 /50 work responsibility
*The new company remains under her already branded LLC (no association with my brand)
I'm fine with the 70 / 30 split of ownership, but am in no way comfortable with the financial responsibility or the company remaining as her already branded LLC. Since nothing other than sweat equity has been put into the business so far (and I have done quite a bit of work as well), and there is no burden of cost with office space, etc. It seems rather upsided in her direction by a long shot.
For what it's worth, I have approximately as much experience as she, as many degrees, and as big of a network.
If anyone has advice, I'd appreciate your input. Just want to make sure I'm getting input from other before I respond.
*70 / 30 ownership: her to me
*50 /50 financial responsibility
*50 /50 work responsibility
*The new company remains under her already branded LLC (no association with my brand)
I'm fine with the 70 / 30 split of ownership, but am in no way comfortable with the financial responsibility or the company remaining as her already branded LLC. Since nothing other than sweat equity has been put into the business so far (and I have done quite a bit of work as well), and there is no burden of cost with office space, etc. It seems rather upsided in her direction by a long shot.
For what it's worth, I have approximately as much experience as she, as many degrees, and as big of a network.
If anyone has advice, I'd appreciate your input. Just want to make sure I'm getting input from other before I respond.