Setting Up a Perfect Partnership

[David Easley]

I have (I think) an ideal partnership situation. I am very knowledgeable on home renovation, know the local market, have past business ownership experience, and am an activator type personality. My potential partner has more available capital than me, is highly organized/administrative, and brings a more cautious eye that will help keep me accountable.

How do we think through profit sharing, especially when they are likely brining more of the cash to the table? Do we make a 50/50 partnership and then the partnership borrows money from my partner? Or do they "own" more of the business because they are brining more money to the table? 

I'd love thoughts and stories on how to best set this up!

[Bruce Woodruff]

I did this as a General Contractor. I brought all of those related skills to the table and my partner brought the money and big business savvy to the table.

We started an LLC as equal partners with me as the Manager. Split all profits 50/50.

It works well if you have 2 like-minded reasonable people involved.....