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Updated over 3 years ago on . Most recent reply

User Stats

42
Posts
22
Votes
Bill Snyder
22
Votes |
42
Posts

Structuring a business entity?

Bill Snyder
Posted

I have an existing business partnership that has done very well. It's a commercial development, and the existing structure is that my partner and I are equal 50/50 owners in the entity and split equity investments into it, and profits out of it. The rub is that I do 100% of the development/operation of the business. The upside is that I have taken the company to exactly where I want it to be, the downside is that I do all the work.

So, new opportunities moving forward; I am 100% responsible for finding them, structuring the deal(s), project management, development, operations, everything. The existing partner will (again) essentially be a silent partner and we contribute equal capital funding.

What is a better way to structure the business entity to reflect unequal involvement? I talked with them about giving me an additional equity stake to cover my additional contributions, but they are not interested as that would give me a majority position.

I am not opposed to "going it alone", but there are decided advantages to, essentially, being able to double cash in amounts.


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