Hi,
Me and a friend of mine are planning to start a very small business.
Initial investment is planned $10,000 (50% share, means $5,000 each).
The store we plan to start business in will be rented at $400/week.
At present we both are working as an employee at almost same salaries ($500/week) and we're thinking one partner should leave the job and handle business while other continues the job.
Let's assume the worse and business makes 0 profit. At the end of the week we have to pay the rent, utility bills etc. Let's just say rent is $400 and as 50% partner, each has to pay $200.
Now, since one partner is at job (paid), while other is handling the store (managing supplies and store), what sounds the fair deal in this case?
I personally think that the silent partner should pay the store rent. Other cost (bills etc) should be bared equally.
In case of any profit, silent partner should pay the store rent. Cost and profit should be shared equally.
What you say? or silent partner should pay something like 70-80% of store rent and working partner should share 20-30% of rent as well?
Thanks
Me and a friend of mine are planning to start a very small business.
Initial investment is planned $10,000 (50% share, means $5,000 each).
The store we plan to start business in will be rented at $400/week.
At present we both are working as an employee at almost same salaries ($500/week) and we're thinking one partner should leave the job and handle business while other continues the job.
Let's assume the worse and business makes 0 profit. At the end of the week we have to pay the rent, utility bills etc. Let's just say rent is $400 and as 50% partner, each has to pay $200.
Now, since one partner is at job (paid), while other is handling the store (managing supplies and store), what sounds the fair deal in this case?
I personally think that the silent partner should pay the store rent. Other cost (bills etc) should be bared equally.
In case of any profit, silent partner should pay the store rent. Cost and profit should be shared equally.
What you say? or silent partner should pay something like 70-80% of store rent and working partner should share 20-30% of rent as well?
Thanks
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