profit sharing? how to?
Out of context: Reply #6
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- cuke4260
think of your business as a separate entity.
say your business makes 200k a year.
in order for that business to run, it needs to have a business guy @ $60k, and a designer at $60k.
it also needs $30k in rent, laptops, etc.
your business grossed 200k minus 150k, that's 50k in profit.
if you're an owner, say you have 10% ownership, you get 5k. that's on TOP of your 60k salary.
you're talking about working for free, i think you're implying that you're not getting a salary; again, that business won't work without a designer at 60k, so you working for free is like you investing 60k into the company.
if you both are starting from scratch, i.e. neither getting a salary, both doing 50% of the work, then in theory you should both get 50% ownership. if you're both doing 50% of the work but guy C is investing 60k, then you all split it 33%(but you two split Guy C's investment)