Ownership Split/Compensation for Partnership
I am considering starting a partnership with someone for a directory based website. As this is a new business, what is the best way to structure partnership in terms of sharing expenses and profits. Is there any particular structure you recommend.
Congrats on your new partnership! Unfortunately I don’t have a ton of experience with setting up partnerships. However, I will tell you that a multi-member LLC or an S-Corp are probably the two best options. We’ve got a couple of great guides that you should take a look at to learn more. In addition, I recommend that you speak with an CPA or tax attorney before you make a decision.
SMB Guide to LLCs: https://fitsmallbusiness.com/llc-taxes-tax-returns/
SMB Guide to SCorps: https://fitsmallbusiness.com/s-corp-taxes/
All the Best-
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