Partnership split- Need advice

[admiral58]

I'm new to the forum and looking for some advice on my particular situation.

I'm thinking of going into a partnership where I invest initially $30k into a fitness business, but the initial investment could be between $150k-$200k if I bought 2 other locations. The money will come from me 100% and not my partner. My partner and I have full time jobs, so we wouldn't take a salary. The labor of the business would be split equally with me doing the finance/accounting, and she would do marketing and be the overall creative genius for the company to direct us going forward.

What split would be fair? I would trust her to make the management decisions since she has more experience and that's why we're partnering in the first place. I was thinking of doing an 80/20 split for both profits and also the overall value of the business. With her not contributing any capital going forward from potential loans in the future, I think this would be fair, but unsure and need some opinions. She doesn't have anything to lose, but lots to gain with equity in the company and profits.

Also, she found us the opportunity and has been helpful to negotiate, but I'm investing all of the money.

[Freelancier]

It's your money, you're taking the largest part of the risk, you should get the largest part of the reward. If she's going to work harder than you at this, though, you might also set up a bonus structure in place of a salary and in addition to any dividends you decide to issue to both of you (because the 80/20 split also applies to any dividends you pay out). That way, she has a clear path to getting extra money even if you don't want to take profits out of the business for both of you.