My brother had an idea for a business and asked me to be his partner. His idea was for me to have 20% ownership and he has 80%. He is going to fund the business (at most $20,000) and believes that I should never be paid for my time starting and running the business by myself, even when it becomes profitable, but that all monies he puts in are to be repaid first before any draws can be taken.
He thinks it is unfair for me to receive a salary, but I am supposed to do all start-up of his idea and then run and manage the entire operation.
Is it fair that the $20,000 be paid back given his extra percentage of the business?
I've read things like if you're not 50/50 you are working for the other. We are still in the negotiating stage. When I heard the word partners I had imagined a 50 50 split with his 20,000 investment and my sweat equity until the business turned a profit. I was willing to pay back the 20,000 with a 50/50 split, but I am still taken aback by his plans for me. Because he is my brother I find myself not fighting for myself, like in the days when we were teens and I'd work his paid handyman jobs for free to help him in life.