Partnership question

**mgm32837** · 07-22-2008 06:43 PM

My husband is going into business with someone else. It is going to be a lawn care business. My husband knows everything and is going to be teaching this partner all of the business and industry.

My husband is using our commercial lawn mower and all other equipment will be purchased. Who gets more of a say in things or is it equal?

Now my question is my husband is putting no money and will be doing all the work at first and teaching him, but he is going to be investing money to get started, so is this partnership considered 50/50 or more one than the other. Contracts will be done but we are trying to figure this out first?

Thank you

**Ultimatum Dynamics** · 07-22-2008 08:58 PM

It all depends on how your write the contract, the other investor could be a totally silent partner and have no say what so ever and vis versa. But it's unlikely in this situation.

**mgm32837** · 07-22-2008 10:45 PM

Well the investor is going to have a say that's been established but should it be 50/50. Hes putting all the money but we are doing the footwork name, etc so if he isn't silent I guess it would be 50/50 since eventually he will learn all of the ropes of the industry.

I mean he is gonna be working to help out so does he get paid the same as my husband who has to train him?

**BusinessAdviser** · 07-23-2008 11:22 AM

The split is whatever you make it. In the absense of any contracts, the state has default rules for the partnership, which likely provide for a 50/50 split.

**JLeezer** · 07-23-2008 12:40 PM

The split should be based on the money and value of property placed into the business by both parties plus a mutually agreed upon amount of value for the additional work that will be done by either of the parties that won't be reimbursed through normal pay.

**buyitused** · 07-23-2008 01:12 PM

i would call an escrow attorney or business transaction attorney to make sure all your ducks are in a row before moving forward. partnerships almost always turn sour eventually...

**Business Mind83** · 07-23-2008 02:25 PM

well, if your husband will be doing all the work and the investor is only putting money then i suggest you should hold 51% of the Partnership. The reason being, if any unlikely event happens then you will have the upper hand when the other partner backs out. although your partnership will be dissolved, you can retain the name of the Partnership Firm and continue using it if you have achieved 'Goodwill' in the name of the partnership. Its just a matter of convincing the other partner.

In other case, even if the partnership stands 50-50 and in case of the partnership coming to an end. it doesn't matter what is written in the contract. if you deserve more than expected then you can always sort the matter in court provided you ought to hire a very good lawyer.

P.S: Although your facts of the deal is not fully disclosed in the post. I have tried to reply them in a non-legal language from what i have gathered by the given facts.