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Forming a new software startup, how do I allocate ownership fairly?
Partnership questions

I am starting an online service provider company along with a business partner of mine. Its to be precise require $150,000 capital and he his putting up every of the capital while i will be the CEO in charge of all the labour. Capital sharing ratio is 10 to 0 (himself and me), while labour sharing ratio is 0 to 10 (himself and me).

My quetion is: How will the profit sharing ratio be calculated, as i am the only one responsible for labour full time and my partner only contributing all the capital. And also whether its ok also to put myself on salary along with part ownership.

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Read this answers.onstartups.com/questions/6949/…. All your question answered. – Billy Chan Dec 3 '12 at 15:22
Your ratios were throwing me for a loop, but I think I get what you're saying now. It sounds like you're each contributing different things (him, money, you, labor) and you're trying to figure out how to split up equity in your company, based on those different contributions. If so, Billy Chan's link is probably going to get you far. – rbwhitaker Jan 6 at 17:01

marked as duplicate by Karlson, Christian, littleadv, jimg, rbwhitaker Jan 6 at 17:02

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