I am considering starting a plumbing business with a friend. He's the plumber; I have the money. Overly simplified, rosy scenario here, but just for discussion, let's assume we're 50/50 partners in the business: at the end of each year we decide what goes back into the business and split whatever's left over. At the beginning, my money is obviously vital, but 10 years down the road things are humming along, I'm still getting half the profits for having put up the money ages ago. Doesn't really seem fair to my friend. Is that just the way it works, or would I quit getting a share of the profits after I make back some multiple of my original investment? I realize we can set it up anyway we like but what's the norm? Thanks much in advance.
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