Find solution
How can i calculate the cumulative percentage?

How can i calculate my percentage of sharing a shop with a partner?

  • my partner and myself shall pay a keymoney for a shop on 50% each.However, the value of the products I bared completely which are already in the warehouse. how can i calculate the profite earning out of the shop?

  • Answer:

    "PARTNERSHIPS" are the most common cause of problems in business. They cause MOST lawsuits & business failures. Hopefully you have not SIGNED any sort of partnership agreement yet. Whether you like it or your not, your entire future & that of your "PARTNER" depends upon whether the Partnership is formulated correctly. BITE THE BULLET! YOU BOTH MUST HAVE A LAWYER WHO WILL ADVISE YOU OF THE VARIOUS WAYS OF SAFELY PROTECTING EACH OTHERS INTERESTS & EVALUATING EACH OTHERS ACTUAL FINANCIAL VALUE OF EACH OTHERS CONTRIBUTION. THEN YOU CAN MEDIATE DIFFERENCES OF OPINION WITHOUT TOO MUCH FRICTION. EXAMPLE OF THE IMPORTANCE OF PROPER FORMULATION. IF YOU ARE GOING TO BE A "TRUE PARTNERSHIP", you MUST make this a "LIMITED LIABILITY PARTNERSHIP" WHY? Suppose that you & your partner get along fine, there are no problems, and you are successful. Without some form of "LIMITED LIABILITY" formation, if later your partner dies, his heirs can demand their share of the value of the partnership in cash, forcing you to sell. Worse still, either partners airs can demand their share of the profits on a regular basis without ever participating in the business, or if you have no buy sell arrangement with a 50/50 format, either partners heirs can control the business whether you like it or not. They can even place a nephew or relative with no business experience to replace your partner. This may even be a person who has failed at everything they have ever done & they just don't know what to do with him. THAT WOULD BE YOUR NEW PARTNER. Without a limited liability formation of some form, (there are more ways to form this business arrangement than a simple partnership agreement), if one of your employees or either of the partners family were to say have a car wreck that injured someone else, lawyers would go after the assets of the business AND your personal assets. (AND THEY WILL GET THEM). ****THE MOST IMPORTANT THING YOU MUST DO IS:**** HAVE A FULLY FUNDED BUY SELL AGREEMENT (usually term insurance that can be updated as the value of the business grows) THIS ASSURES THAT A VALUE IS ESTABLISHED FOR THE BUYOUT OF THE OTHER PARTNERS INTEREST, AVOIDING THE ABOVE PROBLEMS. AGAIN BOTH OF YOUR FUTURES DEPEND ON IT. BITE THE BULLET! EACH OF YOU NEED LAWYERS! YOU WILL QUICKLY FIND OUT DURING THIS FORMATION PROCESS WHETHER YOU ARE COMPATABLE AS PARTNERS.

its m at Yahoo! Answers Visit the source

Was this solution helpful to you?

Other answers

if you did not think about this and reduce it to writing before you became partners, the law assumes that you will be paid for your cost of the goods and then you and your partner will split the gross profits 50/50. at least, the English common law does. your locality may have a law that says otherwise, but you didn't tell us where this is, so we can't advise you. oh :-(

Spock (rhp)

50% each , no matter what the contributions , as 50% will probably be the legal settlement if things turn pear shaped , you shouldnt operate a business with family or relationships , as they usually turn pear shaped for this very reason. be careful , and good luck with it , if you have a cheaquebook or trust account , it will pay for you to have duel signatures on outgoing funds , this will save a few headaches , and cover you for if things turn not as expected .. did I say be careful.. yes I did . good luck with it

DSV

I think you have got problems already so early in your partnership as the most important thing you should have done, which is get it all down in writing first, you haven't done. All the money areas of the partnership should have been sorted out first, and then the different jobs you will each be required to do. If you want a 50/50 partnership, then you should have paid 50% of the keymoney and 50% of the stock, and your partner should have paid the other 50%. As it is you have paid 50% for the keymoney and 100% of the stock. Not much of a partnership already is it? You need to get all this sorted out before you go much further. Partnerships can be a tricky business all round.

margy s

Related Q & A:

Just Added Q & A:

Find solution

For every problem there is a solution! Proved by Solucija.

  • Got an issue and looking for advice?

  • Ask Solucija to search every corner of the Web for help.

  • Get workable solutions and helpful tips in a moment.

Just ask Solucija about an issue you face and immediately get a list of ready solutions, answers and tips from other Internet users. We always provide the most suitable and complete answer to your question at the top, along with a few good alternatives below.