Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Commercial Real Estate Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 4 years ago on . Most recent reply

User Stats

42
Posts
22
Votes
Bill Snyder
22
Votes |
42
Posts

Structuring a business entity?

Bill Snyder
Posted

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.


Loading replies...