QUESTION
How to add and pay a partner I add to my business
Asked on Apr 27th, 2020 on Business Law - Texas
More details to this question:
I am a very small online business(shop) that has been open for one year. I am wanting to add a partner to business. I am not sure of what I need to do or how to pay her. I do want to give her 20% of the profits I am not sure how. She will be assisting me with the operating the website and advertisement. Can partners participate in running the business and still only get the 20%. I am so completely new to this and want to ensure I am doing everything legally.
1 ANSWER
Partners can pretty much have whatever duties and receive whatever compansation the partners agree to. If that person is alos working for the partnership, the 20% can be in the form of salary, partnership dividends, or some combination. The person can own 20% of the equity, or any other percentage teh parties agree to. There is no problem having a partner who receives 20% of the profits and no other compensation. There is also no problem having an employee whose compensation is 20% of the profits but isn't a partner. However the two of you decide to structure your deeal, I would recommend havinga written partnership agreement clearly documenting the terms. I would also recommend consulting an attorney, or at least an accountant, for tax and other advice on how best to structure the agreement.
Answered on Apr 28th, 2020 at 6:36 AM