Working as an employee but for a share of the profits

[reawakening]

Does anyone know how this arrangement could work? Originally a friend of mine wanted to enter a limited partnership, but now he is reluctant to do that because he's the sole financial contributor and doesn't want to give any of the 200k that he's put in away. He's spoken of us entering a contract where I would get a % of any net profits and I'm now working to try and make the business profitable whereas he is acting as more of an investor. Another person will have the same agreement as me.

Can this work and has anyone done it?

Thanks

 

[Quinten]

Yep, that setup can work. I’ve been in a similar situation where one person invests but doesn’t want to be hands-on. In my case, I handled the operations and got a share of the profits while the investor just provided the capital. Just make sure you have a solid agreement in writing so everyone knows where they stand. It helps avoid any confusion or disputes down the road.

 

[reawakening]

Yep, that setup can work. I’ve been in a similar situation where one person invests but doesn’t want to be hands-on. In my case, I handled the operations and got a share of the profits while the investor just provided the capital. Just make sure you have a solid agreement in writing so everyone knows where they stand. It helps avoid any confusion or disputes down the road.

Hi, thanks for the reply. Glad to know it can work.

How did it work for you?

I have a few reservations about it...like what happens in times where the company doesn't make profit..how do I get by.

And just about working to grow a business while never owning anything of what I helped to build.

The company is also in Canada..and I'm in the UK...so I'd have to figure out if a contract is even enforceable internationally like this. I know that a limited partnership would have been..but he doesn't want to give away any ownership being the one putting the capital in.