Looking at starting a business.....
I would put 20-25k cash, the other party would put in 40-45k cash.
The entire loan (400-450k worth) and lease (130k year) would be in my name so I bear all risk outside of the cash.
In addition to the above. My wife and I will provide the labor for the first year at no cost. After which my wife would draw a modest manager salary of 30-35k yearly. The other investor will not work a single hour for the company.
So my question is what would be a fair percentage of ownership for each party? Currently the other investor seems to think 50-50 is fair.
I would put 20-25k cash, the other party would put in 40-45k cash.
The entire loan (400-450k worth) and lease (130k year) would be in my name so I bear all risk outside of the cash.
In addition to the above. My wife and I will provide the labor for the first year at no cost. After which my wife would draw a modest manager salary of 30-35k yearly. The other investor will not work a single hour for the company.
So my question is what would be a fair percentage of ownership for each party? Currently the other investor seems to think 50-50 is fair.
