WE'VE MOVED!

We are proud to announce our NEW community destination. Engage with resident experts and fellow entrepreneurs, and learn everything you need to start your business. Check out the new home of StartupNation Community at startupnation.mn.co

New LLC members' percentage interests template!

BPIIIBPIII subscriber Posts: 1
edited July 2011 in Business Planning
Thank you in advance for the advice!

Does anyone have any suggestions on how to fairly divvy percentage interests for a start up catering company? Is there a formula or a way to calculate what percentages should go?

Thanks again!
BPIII

Comments

  • robertjrobertj subscriber Posts: 0 Member
    BPIII,
    I see this is your first post - so welcome.
    Ultimately, how you divide up the interests in a private company is "what all parties can agree upon".
    Remember that there are really several parts to be determined-
    1. Control - who & how decisions are made
    2. Equity - the actual ownership of the company
    3. Distribution of the results - how profits (or losses)will be disbursed
    For those that will be actively working in the business - there is also the issue of compensation.
    Hope this helps. If you want to discuss your specific situation, feel free to drop me a PM or contact me directly.
Sign In or Register to comment.