COVID-19 Update : We hope everyone is staying safe and healthy. We have limited staff in the office for the mandated real estate closings, and staff working from home to complete all your legal needs. We are now setup for outdoor (under cover) social distance Will signings, Power of Attorneys and Health Care Proxies. You can contact Robert Gurbacki at
716-652-0828 Ext. 304 or email at [email protected]. Of course, we would have rather personal meetings with our clients, but until we can do it safely, everything will be done remotely and at a safe social distance for necessary signatures. No contact will be made. Thank you for your support and understanding.

How do we decide what percentage of the company each partner gets?

| Sep 22, 2015 | Uncategorized |

There is so much more to establishing a solid business partnership than just deciding that you have a good idea and want to start something together. There are many financial considerations to take into account and planning ahead for your future success together and even potential failure can keep you from losing out on a significant monetary amount. 

Written Document

Even if you forgo having a written document outlining your specific percentages, you will still be seen as an actual partnership in regards to the law and will be required to allow for compensation for both parties if the partnership were to disband. You will both be more protected in the future if you can write down specifics on structuring your partnership agreement.

Contribution

Individual contributions to the partnership can come in the form of finances, goods and services, established customer base, labor, manufacturing, property and more. While one person may be contributing more financially up front, having another person enter the partnership with an established customer base can be just as valuable. It is vital that you go through what you are individually bringing to the table and placing a monetary value on it. That value can then be distinguished as a percentage of ownership within the company.

Responsibilities

While contributions to the startup of the company are vitally important, an outline on the responsibilities of each partner can help ensure a successful future together. Who is going to be responsible for the marketing, office work, billing, public relations, dealing with disgruntled customers and acquiring new streams of income? Without having a written plan to counteract all potential confusion, you could both get stuck on details that should have been ironed out at the corporation’s inception.

You are liable for the decisions that each other makes in regards to your company. Make sure that you mutually plan your company’s structure as if your partner was your worst enemy. That way you will both be prepared for everything that could possibly come your way and ensure a lifetime of success in your partnership.

Contact Us at Hall Ricketts Gurbacki, P.C. today.

FindLaw Network