I've decided to take on a minority partner for my startup. This individual will have a 25% stake in the business and I will retain 75% as the founder. My partner will not be putting up any money, but will be heading up software development--coding and managing. I have a couple of questions related to this arrangement which I'm hopeful that the folks on this site can help me with.
My partner will be giving of his own time and skills, and will get a 25% stake in the biz for that contribution. What about expenses? Say we hire a developer consultant for a project and the total comes to $2K. Should my partner pay for part of that cost (25%?), or should I incur the cost as the majority owner since it's understood that his contribution is worth the 25% stake?
How about profits? Should I be able to recoup my original investment in launching the business before we begin to split the profits 75-25 (assuming they even exist)?