Normally in your partnership agreement you will outline what each individual is contributing to the business and how profits will be divided. I strongly encourage you to seek an attorney and have a formal partnership agreement so that you clearly outline what is expected and given to each partner.
The way to divide profits is essentially however you two deem you want them divided. Normally it would be based on the percentage of ownership each has in the business.
Pam Newman is a Certified Management Accountant, author and Certified QuickBooks ProAdvisor for Financial and Point-of-Sale software. She is also president of
RPPC, Inc., which provides customized business development services.
