I have an existing business partnership that has done very well. It's a commercial development, and the existing structure is that my partner and I are equal 50/50 owners in the entity and split equity investments into it, and profits out of it. The rub is that I do 100% of the development/operation of the business. The upside is that I have taken the company to exactly where I want it to be, the downside is that I do all the work.
So, new opportunities moving forward; I am 100% responsible for finding them, structuring the deal(s), project management, development, operations, everything. The existing partner will (again) essentially be a silent partner and we contribute equal capital funding.
What is a better way to structure the business entity to reflect unequal involvement? I talked with them about giving me an additional equity stake to cover my additional contributions, but they are not interested as that would give me a majority position.
I am not opposed to "going it alone", but there are decided advantages to, essentially, being able to double cash in amounts.
What about starting a new company and offering him entrance as an LP with some structure that offers less ownership but maybe preferred returns. Sounds like this is a similar situation I am in and am going out on my own. I do 100% of the Operations as well.
To have a partnership you need to build out the jobs you want to have in your company. Read Emyth revisited for some point of reference. It recently opened my eyes. A partner should have defined roles up front before you run into these issues.
Why not offer an ultimatum? if you're good at what you do, finding money partners is easy.