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?
- 6 months agoFavorite 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.
- PearlLv 76 months ago
i would just give hirn half of it
- NONAMELv 76 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
- Anonymous6 months ago
decide on what % of the work is done by whom, and divide alone those lines ..................