Help with partner ownership...

[ajnavo61490]

My friend and I are starting an auto detailing business. I owned the company for 7 years, but allowed him to buy in for 30%. What would be the best way to pay out money? Do I get a % of each job he does or do we divide any excess $$ at the end of the year that the company has in the account? If it was a % of each job he does, what would the % be?

Thanks!

[Osprey]

My friend and I are starting an auto detailing business. I owned the company for 7 years, but allowed him to buy in for 30%. What would be the best way to pay out money? Do I get a % of each job he does or do we divide any excess $$ at the end of the year that the company has in the account? If it was a % of each job he does, what would the % be?

Thanks!

I would expect that I received pay for my work day and 30% of net profit. I would also agree to profit payout annually as well.

[Fulcrum]

First, he needs to pay you the initial 30% in the form of cash, cash equivalent or a loan if he can afford it. As for the profit payout, talk to your accountant and let him know the terms and whenever there is a payout you get 70% and he will get 30%.