If we are 3 owners, what percentage should we pay ourselves after operations expenses?

If we are 33.33% owners, should we have an equal draw? Or how should we calculate the pot of money that will be split among the members? What % of the total revenue?

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5

To answer your question, the following general rules apply:

If your business is organized as a partnership, you'd each receive 1/3 of the total draw amount agreed to by the partners.

If it's organized as an LLC and you have an operating agreement, you can receive a distribution that's out of proportion to your 1/3 ownership interest, if it's stated that way in the agreement.

If it's organized as an S Corporation, you'd each receive 1/3 of the total distribution amount agreed to by the shareholders.

I would add that you can draft a partnership agreement with uneven splits but you do have to specify that. If you don't, the assumption is on an even distribution.

3

Gary is correct in his reply.

Typically your partnership agreement will detail the provisions of revenue / profit sharing. If you don't have a partnership agreement, I would recommend that you retain a lawyer and get one drafted up. The agreement should also contain provisions for the disillusion of the partnership along with other key aspects equity rights of the partners.

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