Starting a Business

A business partner and I are starting up a store which will have an online presence as well as a physical retail space. How do I divide the profits if we are unsure which side will be more profitable?

min read
Opinions expressed by Entrepreneur contributors are their own.
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.

More from Entrepreneur

Learn to be a better leader and develop successful marketing and branding strategies with Dr. Patti Fletcher's help.
Book Your Session

For a limited time only, get this bundle of Entrepreneur PressĀ® titles for less than $30 (60% OFF) on our bookstore when you use "LEAP" at checkout.
Buy Now

Are paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.
Get Your Quote Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.