How do I split up ownership percentage?
My friend and I are starting a small home-based business. We have invested in a training for starting that business by equally shared amounts (I gave the total money and she will give me in installments). I have attended the training session and we are going to start the business soon.
All of the manufacturing processes are going to happen in my home on the weekends and she will come to my home on the weekends to do the products.
So obviously my part in the business is going to be higher than hers. How should we calculate the ownership percentage?
Great question! Here is an article I found on how to create a partnership agreement when starting a business: https://www.business.com/articles/rules-partnership-agreement/
Have you and your business partner discussed splitting up the ownership percentage yet? If so, what are some of the areas of concern that have come up?
Definitely talk about these things before you start the business. Don't wait until you are 6 months down the road to figure this out.