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I started a graphic design company about 3 years ago. I have been working from home all this time. i cannot keep up with all the work i have been getting. I have asked two of my friends to help me in the business. both of them are going to be involve with some of the work, I will be doing most of the work. but both of them are investing up to 20 thousand each. I am not putting any money. i bring all my customers and everything that has been working for me for 3 years and they put the money to open the office and do some advertising. i have two kids and a stay home wife. My company gives me enough for my living expenses. Now i know that if i want to grow i have to bring investors and people to help me, but this means i have to split the income. in order to make at least half of my living expenses I have to get a salary, and they both will get IOUs. My question is how do i allocate ownership? do i treat them as founders, co-founders or investors? can I keep 51% ownership/voting rights and they get 24.5% each, but split the profits 40%, 30%, 30%.

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1 Answer

Yes, you can.

Voting rights and profit distribution can differ from each other. Look at Facebook.

You may want to hire a lawyer.

I wouldn't rely on the collective wisdom of the Law & Order JDs here.

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...and an accountant. Our company (my wife plus me) has two classes of shares that allow us to pay dividends on one class but not the other, thus allowing us to vary who gets how much of the profits. (BTW: this is in Australia). – dave Jun 21 '12 at 19:38

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