How would you spilt the cost in this business?

[Reach9]

[This is all hypothetical]

If I own a web system business. And i wanted to hire a developer to help me bring this project to life, should I make the business into a partnership? If so, what should the split be?

I'm thinking 65/35 because I'm the owner of the company, i have a vision, i know which strategies to use etc. I just need someone to code it. How much piece of the pie should they get?

 

[Koodauw]

Personally I would just pay the other person for the work they do. Whatever they're hourly/project rate is. They say that the only ship that won't sail, is a partnership.

 

[Reach9]

Personally I would just pay the other person for the work they do. Whatever they're hourly/project rate is. They say that the only ship that won't sail, is a partnership.

Heard that too, thanks.

Hiring a developer is pretty expensive, and money doesn't come easy during a recession.
I guess my choice would be to snag a couple computer science students from my city's university.

 

[r1ch4rd]

Personally I would just pay the other person for the work they do. Whatever they're hourly/project rate is. They say that the only ship that won't sail, is a partnership.

Agree. Cheaper in the long run than having to give away parts of your company.

 

[iJohnHenry]

If you don't want to give away the store with a joint-proprietorship, go for a limited partnership at a percentage, with his/her talent building sweat equity.

If they would starve otherwise, some arrangement could be made for a base salary.