So, I'm curious as to what everyone feels is the best way to split an organization's profits. After the bills and employees are paid, how do you and your partners determine how much the business banks and where your percentages are drawn from?
For example:
ABC Corporation does a total of $100,000 in revenue a month. Total operating costs are $30,000 and salaries equal $15,000. That leaves $45,000 profit. How do you determine how much goes in the bank, how much partner A with 60% interest in the company gets and partner B with 40% gets?
Is there a problem in treating the company as a partner? Therefore saying the company gets 50% of profits, Partner A gets 30% and Partner B gets 20%? Should the partners establish a salary when the profits are stable?
May I be looking at this in too simple of terms? Am I missing some other details/criteria?
For example:
ABC Corporation does a total of $100,000 in revenue a month. Total operating costs are $30,000 and salaries equal $15,000. That leaves $45,000 profit. How do you determine how much goes in the bank, how much partner A with 60% interest in the company gets and partner B with 40% gets?
Is there a problem in treating the company as a partner? Therefore saying the company gets 50% of profits, Partner A gets 30% and Partner B gets 20%? Should the partners establish a salary when the profits are stable?
May I be looking at this in too simple of terms? Am I missing some other details/criteria?
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