Welcome to the Small Business Ideas Forum! We are a community of over 100,000 small business folks with over 163,000 posts for you to browse. We pride ourselves on being the friendliest forum you will find and we'd love to have you as a member of our community. Please take a moment and register for a free account. If you need any help, please contact Chris Logan.

Small Business Ideas Forum

Small Business Ideas Forum

A friendly place to share small business ideas and knowledge, ask questions, find help and encourage others that are involved in the small business industry. Topics include small business marketing, generating revenue and small business computing.

Go Back   Small Business Ideas Forum > Inspiration & Ideas > What Type of Business Should I Start?
Register Search Today's Posts Mark Forums Read

Reply
 
Thread Tools
Old 15th December 2010, 01:49 PM   #1
Pandy
Member
 

Join Date: Dec 2010
Location: Toronto
Posts: 0
Default Want To Start A Partnership, How Do I Get My Fair Share?

Hello,

this is my first post, so please let me know if I'm posting in the wrong spot

My friends and I want to start a small production company where we make online "commercials" for local companies. We've been making short films for our youtube channel and getting adsense revenue from it (about $500/month).

I'm wondering if we should incorporate and what agreements should be made?
Just based on how things are going now, I feel like they are trying to leave me out of the main decisions/profits/ownership.

Here are some important details:
-there are 5 of us (4 guys, 1 girl/me)
-the guys bought $30 000 worth of film equipment:
  • guy 1 bought 35%, directs + edits the films
  • guy 2 bought 35% directs + edits the films
  • guy 3 bought 20% writes + does crew work on set
  • guy 4 bought 10% writes + does crew work on set
  • I bought 0% and am the producer + do sound recording+budget

Whenever we make money, we agree to divvy it up this way:
  • 4 boys = 80%
  • Producers Fee (me)=10%
  • Common pot = 10%
and of the 80%, the guys divvy it up based on the percentage breakdown of how much they spent on the equipment, and this goes towards paying off the equipment.

Now that we want to make it "official", they want me to apply for a $20K government grant to finally pay off the equipment, and make the themselves the 4 shareholders with me as a salaried employee.

My question is, is this fair? Essentially, the $20K grant (that I would obtain because I'd be doing the paperwork) would go to "The Corporation", and "The Corporation" would buy the equipment from the individual owners (the 4 guys) so that the Corporation would own the equipment as assets.
Essentially, I'd be applying for the $20K grant and handing it over back to the 4 guys and giving nothing to myself because as Shareholders, the guys would own the equipment again through owning the Corporation.

My rationale is that all 5 of us should be shareholders because the $20K would come from an outside source, and would be paid back to the 4 guys to buy the equipment, so that their net "contribution" is back to $0 just like mine.

If the company takes off, I wouldnt profit nearly as much since I'm not a shareholder but rather, an employee.

Am I totally wrong? Am I being selfish? Please help!

Thanks!

Pandy is offline   Reply With Quote
Register or log in to remove this ad.
Old 28th December 2010, 09:25 AM   #2
jko11
Member
 

Join Date: Dec 2010
Posts: 3
Default

just be very careful is all i can say, im 24 and got stung out of 30k through partnership, but ur right is it was to take off you dont want to be an employee, but just make sure that everything is down the middle, and u dont put more time or effort or revenue in without getting your fair share, i made this costly mistake

jko11 is offline   Reply With Quote
Old 9th April 2012, 11:52 PM   #3
cfoservices
Member
 

Join Date: Apr 2010
Posts: 79

Default Partnerships

I wrote a 3 part series of articles on deciding on a business partner that gives some insight on this important business topic.

http://www.examiner.com/business-str...siness-partner

http://www.examiner.com/business-str...rtner-part-two

http://www.examiner.com/business-str...ner-part-three

__________________
Michael Barbarita - Next Step CFO - CFO Services
Starting a Business
cfoservices is offline   Reply With Quote
Reply   

Bookmarks


Similar Threads
Thread Thread Starter Forum Replies Last Post
Mentally Prepared To Start Part Time Business... Need Your Help! isiginamo What Type of Business Should I Start? 2 31st August 2016 10:31 PM
People Want To Start A Business But Don't Know Where To Start Crimson Fox General Small Business Issues 49 22nd May 2015 01:26 PM
How To Start Business With Little Money AngelBiz General Small Business Issues 0 25th October 2010 12:55 PM
Help needed!! Wanting to start business! Tom and Bill General Small Business Issues 13 12th June 2006 11:51 PM



Thread Tools

Get Updates
RSS Feeds:
RSS Feed for What Type of Business Should I Start? RSS for this Category Only: What Type of Business Should I Start?

RSS Feed for Small Business Ideas Forum RSS for Entire Forum
Forum Rules


Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump


Small Business Ideas Forum


 
At Your Business - Small Business Directory
Free Business Forms - Prewritten Documents
 
Search Engine Guide
Small business guide to search marketing

 
Small Business Brief
Fetching the Best Small Business Info


Free Links - Free Advertising
Free Guide - Online Directory



Advertise your business here
Contact us for more details!


Semantic Juice
Register now to access free Quick SEO service!


Rocket Lawyer
Sign up for free 7 day trial. Boost your biz!


Buy UPC Codes
Get your products listed online!




All times are GMT -5. The time now is 08:36 AM.


Powered by vBulletin® Version 3.7.3
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
Copyright 2004 - 2018 - Privacy