How To Split Money In A Business Partnership

[jlordy20]

Hello,

Myself and my friend have recently gone into business as a handyman company. We normally do jobs where we do the same amount of hours, but out last job saw one of us do 40 hours on the job, and the other only do 16. Splitting the wages between those hours is not the problem. The problem is that we want to put £200 back into the business. One of us thinks that it would be best to split the money then each put £100 in, the other thinks it would be best to deduct the £200, then split the money out.

Which way would you suggest is the way to do it, in the interests of keeping things equal and fair?


Jamie

[society]

I would take out the £200 first then split the difference.

[ummmm]

Put the £200 in then split the money hourly.

[Brinjal]

Yes 200 out first then divi the rest accordingly.

[sunny-dave]

Hmmm - interesting.

I lean the other way - split the money first.

Consider a slightly different situation - if one of you had done *all* the work on this job, would it be right for him to have to put the £200 into the business before he got paid - I tend to think not?


You should both be paid the correct hourly split for *all* jobs (including this one).

Then if the business needs more money you both stump up an equal amount.