Silent Partner Share

agentman · #1 Apr 28, 2008, 01:33 PM

Hello,

I am trying to figure out what my take would be in a business with a friend, where I am investing 40% of the cost of buying the business. My friend who is investing the balance, will be the "active/working" partner, I will be the 'silent" partner.

What would be my split? Does the fact the he is "active" in the business mean he takes a larger share, or is his work which is salaried count separately?

Any ideas will be appreciated.

delite · Apr 30, 2008, 07:58 PM

not necessarily. if own say 40%,necessarily you should share 40% in profits and losses.sometimes areements are made and provisions can dictate a different different reduce to writing,splits is determined by equity

agentman · Apr 30, 2008, 10:02 PM

Thanks, delite! Of course I have a great deal of home to do on this.



At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to: Get free answers from experts in any of our 300+ topics. Accept money for answers that you provide. Communicate privately with other members (PM). See fewer ads. Sign Up!