How would this partnership business work in terms of who gets the profits?
Ryder asked:
Let’s say two people start a t-shirt business… one of the people doing the business is an artist who does the designs for the company, such as designs for the shirts. When these shirts get sold ($40 for a shirt for example), and the t-shirt is paid for, how is the money split among the two who is running the business?
Let’s say two people start a t-shirt business… one of the people doing the business is an artist who does the designs for the company, such as designs for the shirts. When these shirts get sold ($40 for a shirt for example), and the t-shirt is paid for, how is the money split among the two who is running the business?
Tags: Business People, Business Terms, Business Work, Doing The Business, Money, Partnership Business, Profits, Running, Shirt Business, T Shirt
August 1st, 2008 at 11:25 am
This would have to worked out between the two owners in a written and signed agreement. this can be 20/80, 30/70, 40/60 or 50/50
August 3rd, 2008 at 9:16 am
chick the web
August 5th, 2008 at 5:38 pm
Since you haven’t legally formed a partnership, likely would be 50/50. I suggest you form a legal partnership so everybody is on the same page.
You must document the ownership percentage when you do this and the profits must be split accordingly. Linked below is an article giving advantages and disadvantages. Also has a link to nice table. It confirms what i’ve said above.
August 7th, 2008 at 10:05 am
For startups and new businesses, I would recommend