Need Help on profit distribution among LLC members
Newbee subscriber Posts: 2
edited July 2009 in Startups Created by StartupNation Community Members
I am in the initial phase of creating an operating agreement for an LLC for myself, my spouse and a colleague. We are trying to start a franchise in the near future. I am having trouble reconciling how profits should be distributed based on our individual contributions. My colleague and I will both be equally contributing the initial start up capital for the business and my spouse will not be contributing any additional capital outside of what I will be giving, however he will be running the day to day business full time by focusing on business development and the office staff. My spouse won`t be taking a salary at least initially and I want to make sure that he will receive the appropriate share of profit. My colleague has a CPA background so she will be doing the finances monthly while she keeps her regular full-time job and I will keep my full-time job in addition to assisting my spouse with any operations or marketing efforts that are required since that is my expertise. Any insight that anyone has would be greatly appreciated.
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