How to Share Profits for Joint Business?

[Suba]

When we set up a business we often lack capital, so we need a partner to invest so the business can run smoothly. If partners take part or are active in all company activities, of course we need to pay or reward them for their hard work, but at the end of the year, we will be confused about dividing the profits, should the profits be divided equally or what do you think?

 

[Augusta]

Yes, if the people are putting in the same energy to work then there should be equal share but if not, there should be an agreement and everyone should follow through with that.

 

[Springtime]

I think there should be a written agreement between the partners to avoid conflicts. One way is to distribute profits or dividends according to the percentage of shares in the business of each partner.

 

[Augusta]

I think there should be a written agreement between the partners to avoid conflicts. One way is to distribute profits or dividends according to the percentage of shares in the business of each partner.

That's the way to go . We just have to always save our money no matter how small to have for emergencies

 

[King Belieal]

Before you get a partner, you people should sit down and discuss on the profits sharing formula. It would save a lot of conflicts.

 

[Starmix]

Before you and your business partner put up your capital, it's already expected your profit sharing agreement which is a must 50 /50 sharing after the net pay. It also depends on your agreement approved by both of you.

 

[Suba]

Before you and your business partner put up your capital, it's already expected your profit sharing agreement which is a must 50 /50 sharing after the net pay. It also depends on your agreement approved by both of you.

It's a good idea to divide it equally or 50/50, but for example my partner is you. Even though I created the idea and started the business, I can only put in capital of $30k, whereas you as a business partner put in capital of $50k, of course you will refuse if the profits have to be shared equally.

 

[Starmix]

It's a good idea to divide it equally or 50/50, but for example my partner is you. Even though I created the idea and started the business, I can only put in capital of $30k, whereas you as a business partner put in capital of $50k, of course you will refuse if the profits have to be shared equally.

That's what I've said that it also depends on your agreement. It's also illogical to have a 50 /50 profit sharing. It could be 30 /50.

 

[Fidelia]

It's a good idea to divide it equally or 50/50, but for example my partner is you. Even though I created the idea and started the business, I can only put in capital of $30k, whereas you as a business partner put in capital of $50k, of course you will refuse if the profits have to be shared equally.

The profit would be shared based on the percentage of the contribution of a partner to the capital of the businesses. Simple as that.

 

[Stardom22]

I think the joint business has their definitely procedures laid down on the Constitution on how the sharing of profits and losses is done.

 

[Xtynehappy]

I think there is always an agreement on how the profits and losses for the business should be shared among the business partners.

 

[Nomad]

How much have you invested determines how much profit you can take form the joint venture business. If you invested 10 percent, you can only take 10 percent profits

 

[SilverLance]

You need to consider any agreements or contracts that have been put in place regarding profit sharing. These agreements should outline how profits will be divided and can help avoid confusion or disputes down the line.

 

[Kross]

You need to consider any agreements or contracts that have been put in place regarding profit sharing. These agreements should outline how profits will be divided and can help avoid confusion or disputes down the line.

That is the crux of it. There must have been a laid down procedure and agreement for profits sharing before the partnership was struck. That should be resorted to in sharing profits.

 

[eLdavis]

When it comes to sharing profit in a joint business, I believe it has to be discussed by both partners and there would be some sort of written agreement.

 

[SilverLance]

That is the crux of it. There must have been a laid down procedure and agreement for profits sharing before the partnership was struck. That should be resorted to in sharing profits.

Having a clear and documented agreement in place before entering into a partnership is very important. It not only sets expectations for both parties but also helps prevent misunderstandings later on.