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!