Amiri Butlera year agoTransitioning to passive 50% partner? A friend and I are equal partners in a business. We have both been drawing equal salary and profit distributions for a long time but I'm no longer interested in working for the company. Still, it's profitable, and I'm not sure that we would be able to agree on a buyout price that I'd be happy with. One path that sounds potentially attractive is to keep my share of the business and to continue drawing half the profits, but to (greatly) increase my partner's salary to compensate for the increased work he'd be doing (which is totally doable). Is this at all typical, and are there standard terms (e.g., salary/dividend split) that are used in this type of arrangement? There's a lot of information about becoming a "silent partner" in a business but it all seems to be directed towards people investing capital in a new company, not just getting lazy in a company they already have. 01920
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Amiri ButlerAmiri Butler