Anonymous
Anonymous asked in Business & FinanceSmall Business · 6 months ago

How would we split the profit?

If I go into business selling painted wooden items with someone. I would handle most of the business matters. He would make the wooden crafts, some to be painted, some not. I would hand-paint the wooden objects. Everything else we would do as a team. How would you suggest we divide our profits?

4 Answers

Relevance
  • 6 months ago
    Favorite Answer

    Probably a percentage of net profit based on the number of hours worked by each.

    Talk to a tax professional about this. You have several choices of business entity, including sole proprietor. If you're a sole proprietor and your business partner is your employee, you'd report all the revenue on your tax return then deduct the payroll expense. If you form a partnership, you have guaranteed payments and distributive share (don't ask if you don't know - it's much too complicated for amateurs to pull off), if you're a corporation you could structure ownership any way you want and you could both be employees, if you're an LLC, you'd be taxed like a partnership unless you make an election to be treated as a different business entity. There are so many possibilities. Figure out in general how you want to split the profits, then talk to someone who knows what they're doing.

    Business is not a DIY project. Don't try to navigate legal and tax issues unless one of you is a CPA or an attorney.

    • Login to reply the answers
  • Pearl
    Lv 7
    6 months ago

    i would just give hirn half of it

    • Login to reply the answers
  • NONAME
    Lv 7
    6 months ago

    base it on profit divided by time...if he works for 8 hours and you work for 2...then its 4:1...a businessman should not limit his clientele to 1 person...you need more artists

    • Login to reply the answers
  • Anonymous
    6 months ago

    decide on what % of the work is done by whom, and divide alone those lines ..................

    • Login to reply the answers
Still have questions? Get your answers by asking now.