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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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.


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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