Should Partners Split a Business 50-50?

Deborah Sweeney of MyCorporation.com answers frequently asked questions from business owners.

Deborah Sweeney By Deborah Sweeney

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Question: With a partner, is it best to split ownership 50-50?

Answer: By default, business partnerships are split 50-50, and that seems to work well enough for most people. It ensures that both owners have an equal say in the business, and typically reflects the split in time and resources each partner invested in getting the company up and running. But there are always cases where partners don’t want to split ownership down the middle. For example, if one owner invests a lot more than the other, then they may want a more substantial say in how the business is run. It all depends on the circumstances of the partnership, and new partners should discuss ownership before moving forward with the business. If the partnership is not going to be 50-50, they’ll need to say so in their partnership or operating agreement.

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Are you looking to open a small business? Here are a few more helpful articles from Deborah Sweeney to get you started:

10 Things to Know When Starting  a Business in 2014 
Should I Form a Manager-Managed LLC?
What is an EIN and Why Do I Need One? 
Do I Need a Business License?
How to Form an LLC

Posted: June 10, 2014

Deborah SweeneyShould Partners Split a Business 50-50?