3 ms·
45% of profits, may or may not be good. Off the top of my head, they will have... * hosting costs (and everything that goes with that) * payroll & benefits (a
by WellDressed 12y ago
45% of profits, may or may not be good. Off the top of my head, they will have...
* hosting costs (and everything that goes with that)
* payroll & benefits (are they paying themselves?)
* taxes (the rate they are taxed is dependent on the state they incorporated in and the type of corporation they are incorporated as (Sole Proprietor, LLC, S or C Corp))
* misc.
It could turn out that they don't run a profit, yet still generate revenue. If you feel that it has legs, you may want to ask for a percentage of the company. This would make you an employ and would allow you in the future the potential to receive dividends on profit. This is taxed at 15% instead of normal personal income tax rates. (obviously i'm looking at this from the USA point of view.)
Just my $0.02
edited stuff