Starting a company is a daunting task but having someone do it alongside you can alleviate many of the struggles that doing it alone contains. The issue then is how much of the company and its profit should be shared between partners. The ensure sustainability within the company it is paramount that all partners are satisfied with whatever agreement is made. Here are some ways that a company can progressively handle assets between business partners.

 

Research

Before determining if becoming partners or splitting profits is a good idea it is first important to do your research. In a 50-50, 33-33-33, etc. agreement that evenly spits the company between partners it may be difficult to come to complete agreements in all things. Splitting in favor of one, like 51-49 alleviates some of the tension that decision-making makes, however it brings up the problem of the larger entity abusing their control. It’s also vital to understand how partnership taxation works and how different company entities can affect this relationship long-term.

Agreements

When working with partners the best way to maintain healthy company relations is by making sure nobody is consciously being avoided or misrepresented. The way to accomplish this is by revisiting decisions until everyone is in agreement. Whether it be for future endeavors, company policy, share distribution, or more it is vital that everyone is represented and accommodated appropriately.

Reevaluate & Adjust

Bi-annually, Quarterly, Annually, and weekly are examples of times at which company officials get together and reevaluate the company and its policies. By having discussion over these seemingly menial decisions, adjustments can be made to more accurately and beneficially represent the company over time. This too will mitigate the chances of misrepresentation and partner dissatisfaction in the workplace.