Agreement To Split Profits

If you plan to go into business in partnership, you need to be willing to share the profits. But what is the best basis for this, especially when a partner learns more working time, invests more money in business, or even sets up your business line of credit? Here`s what you need to know to plan your incentive strategy in a small business partnership, as well as a few other steps you can take to make that partnership airtight. Before entering into a partnership, you must draw up written contracts covering your agreements. A profit-sharing agreement usually expresses the ratio you use for the distribution of profits as well as the distribution of losses.

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