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You're doing it wrong (unless your are not a tech startup but a partnership such as a lawfirm). The money coming in belongs to the company, not to any individu
by alain94040 11y ago
You're doing it wrong (unless your are not a tech startup but a partnership such as a lawfirm).
The money coming in belongs to the company, not to any individual, therefore you cannot share it the way you describe. There are two main mechanisms that you can use to share profits among individuals:
1) stock in the company: as shareholders and co-founders, you must have split the equity somehow (check http://foundrs.com http://foundrs.com for a calculator to figure that out).
2) the company can offer commissions to employees, as part of their compensation
Something in your description doesn't make sense: either you are the sole owner of the corporation, and those two other people don't own any shares. You are wondering how to bring them on-board. Or they are already shareholders, and you already had the discussion about how to split the equity.
- brudgers 11y agoAn LLC (at least in many US jurisdictions) can be structured with orthogonal profit distribution and control structures.
- hobbyjogger 11y agoYep. So can corporations (at least in DE). Check out Delaware Gen. Corporate Law § 122: "Every corporation created under this chapter shall have power to: ... (15) Pay pensions and establish and carry out pension, _profit sharing_, stock option, stock purchase, stock bonus, retirement, benefit, incentive and compensation plans, trusts and provisions for any or all of its directors, officers and employees, and for any or all of the directors, officers and employees of its subsidiaries ... http://delcode.delaware.gov/title8/c001/sc02/index.shtml http://delcode.delaware.gov/title8/c001/sc02/index.shtml