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

Get heaping discounts to books you love delivered straight to your inbox. We’ll feature a different book each week and share exclusive deals you won’t find anywhere else.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Create your business plan in half the time with twice the impact using Entrepreneur's BIZ PLANNING PLUS powered by LivePlan. Try risk free for 60 days.

Latest on Entrepreneur