[Jule]

How would you structure this business partnership?
I approached my uncle last night with a business idea. He loved it!

I can’t do it by myself because it requires manual labor like getting up on roofs and things that I am just not good at. He can easily do it however.

My value is buying the equipment (one time every five years) and managing the business (sales, customer database, marketing, payroll, taxes, etc).

He can’t do it himself because all of his money is tied up to the construction of a new house he’s building.

Essentially we need each other for this business.

I am not sure how to structure the partnership percentage. Thoughts?

[Robert]

51/49 + hourly rate for his labor. You keep the controlling share.

[Jennifer]

Loan him the money and don’t partner up, even if the partnership works well it’s just extra complications that aren’t necessary

[Jeannette]

50/50 – regardless of the circumstances you both need each other and bring different things to the table

[Jonathan]

Maybe you can figure out how much each of your time is worth hourly and check back in later to see how many hours you’re each spending.

[Damon]

How much money are you expected to bring to the table to get this started?

In 5 years wouldn’t you expect the business to buy any additional equipment?

How much time do you expect you’ll in investing versus your uncle on an ongoing basis?

Do you expect to need any lines of credit?

[Der]

50/50 ownership. Different salaries if you want it to reflect the manual labor.

[Nikolas]

50/50 or 60 him and 40 you. Sounds like he will be doing more dangerous work so he should be getting paid more.

[Author]

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