How do I write up a sweat equity agreement?
I opened a business with a family member 3 years ago. I was new to it. We were supposed to sit down and write up a sweat equity agreement. We never did. My partner's investment was cash. $70,000. I was to work for 1 year in the business to become 50% equal owner in said business. These things were agreed upon via text and verbal but never written down in an agreement. Recently I approached my partner about this and they agree we should finish this step. How do we go about doing this in retro?
Thanks in advance,
It would be great to locate a lawyer to write up your agreement but it is possible for each of the partners to work together to create this document. A good start is for each person to write down their parts of the agreement then merge those pieces into one document that will be signed and dated by each of the partners. It is not necessary to start on the date of the document but rather to backdate it because a year has passed. Take your time and consider the ramifications of each part of the contract. Remember it can be as short as one page because the primary thought is the intention. Questions to be asked is what is your worth to the organization - will $70,000 cover one year or two years of working to equal the original cash investment.