Forums: Discussions for entrepreneurs and small business.

Hi all, I`m starting a business with three indivuduals (VERY early stages).  We have a viable business concept of which I was an interigal part in designing.  We`ve met a few times to talk through issues, ideas, etc., and it`s progressing.  I was approached by one of the other two partners yesterday and he said " you know, we`re going to have to decide how much of the company each one of us will own"  I got nervous because he is close friends with the other member, so I felt a bit ...squeezed shall we say.  He claims he has a lot of business contacts, which it may be true he has more than me.  As the original three founding members, I was assuming the three of us would have the largest and equal shares in the company.  The rest of the team we build would own the rest.  Am I out of line, or unrealistic, to propose we all own equal shares?

I wouldn`t have the foggiest idea on what to do in this situation, but I don`t think you`re out of line or unrealistic.
 

I actually have this same type of question.  When it comes to active and passive investors, how do you decide ownership.


Say I put up 5,000, and two others put up 5,000 each that equals a 1/3 for everybody in that regard.  If you add the fact that I`m the active partner and the other two are passive and just investing money, does my share become bigger? 

How do you decide that?

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Your Friend and VA,
Tricia Kos, Owner
Quality Business Solutions, LLC
Your Virtual Assistant Destination
http://www.qbs4u.com

Hi Darkstar,

My name is Lisa and I work for an attorney who specializes in business start-up (LLC`s) and Technology Law.  Here is the link to his website:   http://www.informationlaw.com  

His name is Daniel Pepper.  He offers a 1/2 hour free consult and this is doable by phone.  We are located in NJ.

If you are interested, give me a call 908.698.0330 and we can set up an appointment for that consultation.  It`s free, and you can ask any necessary questions!

Good Luck.