Updated over 7 years ago on . Most recent reply
Profit distribution and Operating Agreement Question
Hello all! I'm Tom Kidd and live in SW Ohio. I'm an attorney, more of a litigator than a transactional guy, but interested in becoming more of the latter as I get old and want to stop fighting with all those young turks.
Anyway, my question is I am looking to form an entity with a close friend. I will be bringing more money to the table. He will be bringing more construction/repair knowledge. Typically, I would base the profit distribution on the initial capital contribution, but I am not sure if that is equitable in this situation as his skills will likely be needed more often than my skills as an attorney. We do not intend to flip homes,.Thoughts on how to determine a just allocation in this situation? All suggestions are appreciated.