How would you spilt the cost in this business?

Discussion in 'Community Discussion' started by Reach9, Oct 29, 2011.

  1. Reach9 macrumors 68020

    Reach9

    Joined:
    Aug 17, 2010
    Location:
    In America
    #1
    [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?
     
  2. Koodauw macrumors 68040

    Koodauw

    Joined:
    Nov 17, 2003
    Location:
    Madison
    #2
    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.
     
  3. Reach9 thread starter macrumors 68020

    Reach9

    Joined:
    Aug 17, 2010
    Location:
    In America
    #3
    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.
     
  4. r1ch4rd macrumors 6502a

    r1ch4rd

    Joined:
    Aug 5, 2005
    Location:
    Manchester UK
    #4
    Agree. Cheaper in the long run than having to give away parts of your company.
     
  5. iJohnHenry macrumors P6

    iJohnHenry

    Joined:
    Mar 22, 2008
    Location:
    On tenterhooks
    #5
    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.
     

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