 Business advice needed about splitting profits, contracts in new company: Car sales.
Okay. I'm looking for some help. I feel like I'm being worked.
A good buddy of mine "BUD" and his bro "B" and wifey "W" have been flipping auctioned cars for about four years unofficially until credit improved for dealer bond. My buddy always wanted to help me out and was there for me to join in on the fun but money was my issue as i just didn't have the initial starting capital.
A few months ago im 40k richer and ready to get in on this.
At the same time, W is approved for bond and business licenses are applied and approved for and verbal agreements are made. The most questionable one being the profits. I know nothing about the legal aspects and business structure when 4 individuals share ideas for starting a company when one person holds the titlement to the company.
We agree on a percentage to profits, of coarse. Me 30%, BUD 30% B and W get the rest.
As of now each one of us have are own money. We buy the cars via internet on B&W' s membership account that is also on B&W 's line of credit, until dlr. license is official.
I'm not profiting on everything being bought and sold because they say my money isn't always good. But yet, they make their profit off of my money that I invest. Please be aware that each one of us does not have more money then the other. I'm still learning so I just help get cars ready for sale. Whether it was bought with part of my money or they bought them with all there money. I don't doubt BUD is making his 30% on each and every sale. He's the one that sells them most the time.
Not everyrhing gets sold right away. Some of them sit awhile. So I end up sitting awhile out of money to further buy more until some are sold. The ones I put in on!
When i hear 30%, i think 30% of everything sold in the company, as a company.
What should I do or handle this, I'm not making very much as my money "isn't always good money" .
What is fair in this company.
Like i said ive never started a business before and it gets real confusing when everyone's your friend. But business is business and an agreement, although a verbal one, doesn't seem right to me. 30% is pretty low when it's my money. If the purchase is paid in full by only me, it's only 30 for me and more for them.
I help get theirs ready for the sale and I'm not getting paid for that. BUD's answer is that he wants me to be there so I learn it all. True. But, i thought we all profit as a company in whole? I don't know.
I
Last edited by okay; 03-23-2019 at 12:04 AM.
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