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Private limited Company profit allocation

    • 1 posts
    April 23, 2013 8:06 AM EDT



    I'm sure this has been answered before but cant find the topic.

    I have set up a company and will be majority shareholder as its my idea and have made all the sales contacts and financed all start up costs. I am thinking about having 51-60% and distribute the other 40% to the investing partners who have come on board in the latter stages.

    At year end i wanted to recoup 65% of the profit back into the business and and allocate the rest to the shareholders.

    Does that sound viable and correct in a typical private business and are tif they were both 20% share holders they ould be entitled to to exactly 20% of the profit allocation each?

    • 31 posts
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