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Barrister
Barrister, Attorney
Category: Business Law
Satisfied Customers: 33802
Experience:  15 years practicing attorney, JD, BA, MBA
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What percentage of ownership should a working partner

Customer Question

What percentage of ownership should a working partner receive if he has no investment?
Submitted: 8 months ago.
Category: Business Law
Expert:  Barrister replied 8 months ago.

Hello and welcome! My name is ***** ***** I am a licensed attorney who will try my very best to help with your situation or get you to someone who can. There may be a slight delay in my responses as I research statutes or ordinances and type out an answer or reply, but rest assured, I am working on your question.

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This is kind of a subjective question because there is no right answer... It depends on what the equity partner and the money partner agree on.. If one is fronting the entire investment and the other person is contributing their labor to run the business entirely without any help from the money partner, then a 50/50 split might be fair. But if they are both working in the partnership, then the non money partner shouldn't receive as high an ownership interest.

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The money partner could always just hire someone to work for them to run the business unless the working partner has some type of unique skill that they are contributing to the partnership and the money partner is just funding the venture.

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So with the information provided, there is no way to come up with a concrete answer since it will boil down to negotiation between the parties as to what they feel is fair.

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thanks

Barrister