There are two options depending on the two of you since you already described the other party as your boss.

Is there a registered company in place. If yes, it can be restructured such that both of you become the directors and shareholders of the company or partners, if its a registered partnership.

The other option is to have a partnership agreement outside the registered company which defines your relationship.

The issues at stake are:
Valuation of contributions since you are contributing your skills while he is putting down the capital. This leads inexorably to share of ownership and share of profits.

I must state straightaway that your bargaining position is weak because your skill is readily available in the labour market. So the partner with the cash naturally has an upper hand. Thus you need a good lawyer who can push your case for a good share of the profits. This largely depends on the appetite of your partner for greed. Pray he's fairminded, otherwise it will be a tall order.

The weapon you have is your skill. Market it to your lawyer and let him prepare a proposal to your partner for either a fresh company registrable with CAC or a partnership agreement which sets out the terms governing your relationship.

Pls revert if you have further questions.

GET A LAWYER!

Business partnership is just all about mutual agreement, usually in your case, the sharing formular can be 60/40 with the bulk going to the investor while the less is for you and the running of the business. This is to help you actualize a short time frame to pay back his ROI and then you both can now come to terms of the next sharing formular which will have you taking the bulk of it.

The next step depends if your investor is putting in an equity in the business then there is no target here but its a forever thing all you have to do is to pen down an agreement stating your position in the business and the sustainability of that position here the sharing formular can be a little bit adjusted because his investment/equity runs the business and you take the lesser part for yourself and the running of the business. in this case u can share 55/45 note he can influence matters as he is ur boss. In this category after some time, you can put in your equity and take your place on top since it is your idea but make sure the clauses are clear in your agreement.

chinoify:
still Looking for Advisers ....
phone number and email sharing found....

Bro; in as much i admire your zeal to be productive and possibly employ labor. i want to draw your attention to one thing.
EVERY INVESTOR HATES STORY!!! They all want to see the positive effect of their investment...

It takes the Grace of God to see an investor who will stand by you when things are not moving as documented.

my question here is, Do you have a shock absorber plan?? ie, what it takes to make the business a success

dont look at the money he want to invest, look at the profit he is expecting. Can i make it happen
Dont tell me 'By the Grace of God'... be realistic.

because if you start telling him stories tomorrow and he sees you changing or wearing your brothers new Jean, he has every right to call you names.

i have seen guys with zeal go into these kind of gestures and only a few (very few) where a success.

allow reality to overwhelm you, not the big money you want to touch... we all think and plan well when broke. only a hand ful execute good plans when money comes.

Lastly... ARE YOU Financially Disciplined??





if not.. this might be an END TIME AGREEMENT

A brilliant one for you Bro.

Hi Tony,

I just wanted to lend some words on your request and hope it will help.

Firstly, realize that a lawyer is not the right person to advice you on financial or investment matters. He is to help you translate into writing what you have finalized on the issue. I will recommend you talk to a broker or investor.

Secondly, there are no such thing as sharing profits. Technically, you share holdings in the entity. So, concentrate on the percentage of holding in the company. To know how do this will require longer scripting. Let me also assume you are a shareholding director in the incorporated company.

Thirdly, realize also that all resources are important to the actualization of a business and partnership. Intellectual resource is as important as financial resource and should not be under-priced.

Lastly, the information you have provided are not enough for even the best Harvard proffessor to advice you on. So, consider all opinions on this forum ad tips. To reach a sound decision, more info will be required like company valuation, future plans to raise capital, other proposed shareholders, etc. Except you want to run an Emeka and Sons Coy without corporate values.

To wrap up, please, make a decision on shareholding on -who originally founded the business idea (has upper hand)
-If ur boss will continously fund the biz
-how much is his current commitment finacially
-ur convincing power, and other factors.

Typically, an investor will ask for 6-15% equity for giving anything $5,000 to $100,000. A lower staker in partnersip will ask for 20% -50%. On your particular situation as you explained, you should go for a 60:40 ratio (You:Boss). I have reasons why and can share with you personally.

I write as a professional and a founder of two companies who have pass through that phase. If you may want additional opinion on this, you may contact me on 08062603114. I am really tired typing.

EveryLadY:
Hi Mr. Bucknor, My name is lilliementor.I am a business marketing interpreter,a digital marketing consultant. I support the use of a lawyer to craft the agreement. I will give you a copy of a partnership agreement I did with one of my business parteners that is similar to yours for consideration.

You can sms me your email address to 08034530864. Please include your name in your sms.

Drop your advice here let all of us learn. Nairaland is an open source App and not all offer should be profiteered. You have already used the platform to advertise your services, also give back to the society.

Like the op said, he had already contracted a lawyer, but he also need opinions here from experts and experienced business partners. Let's read yours as an expert.

. instead cant u seek for a Counsel. In any form of advise in this regard a Lawyer is ur best option op. I strongly advise u to get a lawyer Involve in thiskibd of deal for better understanding. All the best..

Partnership is not always as clear and cut as it seems. My advice to you is to get a lawyer and a smart one that matter. Am a lawyer as well but the ethics of our profession prohibits me from soliciting for a brief, but notwithstanding you can hit me up for a short and brief advice for free

TWOWAYMIRROR:
Hello, My name is Tony Buknor.
I am about going into a business partenership with a Boss of mine. He is the sole financier., i will be providing the technical and managerial expertise. This means that i will be running the business 100%, building the brand from a scratch..from choosing a name for the biz to creating logos,hiring of staff etc.
We agreed to do an agreement..so im asking all the sound business professionals and business lawyers in the house to help me iron out what they think will be a reasonable condition of the partnership, including the sharing of the profits /loss. And other important clauses of the agreement.
I know i will get a lawyer..but i seriously rely on niralenders to guide me on what my conditions should be on my part of the agreement.
Thanks
.TONY
Modified:..we are going into phone business...sales,repairs..on a big scale.in a shopping mall
cc: lalasticlala

ITEMS TO BE INCLUDED IN A SIMPLE PARTNERSHIP AGREEMENT
Names and address of partners.
Name of partnership This will determine whether or not the name should be registered.
Nature of business This will determine the extent of liability of the firm.
Place of business Where the business will be situated.
When to commence business The time or period when the business will commence.
Duration of the business How long the business will last.
Contribution The amount expected of each member to be contributed for partnership.
Management How the partnership agreement will be managed.
Premium The amount paid by a partner to be admitted into partnership.
Profit The mode of sharing profit.
Salary The mode of salary and what each partner will be entitled to.
Partnership properties The mode of acquiring and settlement of properties in the event of winding up.
Bankers Bankers of the partnership.
Accounts Who the signatory to the accounts will be.
Retirement Where partnership is not for a fixed period, the retirement of any partner will dissolve the partnership. However, if it is for a fixed duration, no partner can retire except by the consent of other members.
Expulsion or Suspension No majority of partners can expel or suspend a partner except otherwise stated.
Dissolution A partnership is dissolved by death or bankruptcy of one partner except otherwise stated.
Arbitration Partners can go into arbitration to settle disputes.
these are clauses in the partnership agreement that must be properly drafted by a lawyer.
you can reach me via my mail for more enquiries.

WhoBeThisMan:
First of all has the company been registered with corporate affairs commission? If yes, are you a registered share holder in the company? Very important.

Make sure everything is in black and white and use a lawer if need be for the agreement. I have had a very bitter experience from this kind of deal before because I was trying to be nice.

It was registered...and No i was not listed as a shareholder

chinoify:
still Looking for Advisers ....
phone number and email sharing found....

Bro; in as much i admire your zeal to be productive and possibly employ labor. i want to draw your attention to one thing.
EVERY INVESTOR HATES STORY!!! They all want to see the positive effect of their investment...

It takes the Grace of God to see an investor who will stand by you when things are not moving as documented.

my question here is, Do you have a shock absorber plan?? ie, what it takes to make the business a success

dont look at the money he want to invest, look at the profit he is expecting. Can i make it happen
Dont tell me 'By the Grace of God'... be realistic.

because if you start telling him stories tomorrow and he sees you changing or wearing your brothers new Jean, he has every right to call you names.

i have seen guys with zeal go into these kind of gestures and only a few (very few) where a success.

allow reality to overwhelm you, not the big money you want to touch... we all think and plan well when broke. only a hand ful execute good plans when money comes.

Lastly... ARE YOU Financially Disciplined??





if not.. this might be an END TIME AGREEMENT

This is Discouraging...shoild i back out?...it is kind of too late..millions have been spent on rent and furnishing alone,becos it is a Mall shop..i wont say im well disciplined but im ready to shrink to avoid disappointments. The end to ur post makes it sound like a joke..learn to end well

Phinity318:
Just make sure ur capacity in the business is equated to a fat share in the business... because normally irrespective of who control the personnel of a business, business wise, the one man with a very high percentage stake controls what goes around... Just be careful not to fall into a master servant relationship and since its a joint venture make it a point of note that u will not report to him else he will be exerting control over u. my 2cent

Who should i be reporting to then..remember he is the one providing the whole funds

You are not into any partnership, you are an employee of the business owner who happens to be the financier. What you should be talking about is the best employment agreement which will favor you that you should tender.

yomi007k:
Wish u guys success in ur business.


I like when great minds unite to build something productive.

Cheers

Thanks

meet a lawyer.

Yeah!guy its a good one but I'll advice u get a lwayer.so your boss will not use you and dump you.it doesn't matter how nice he is,when it comes to money and bussinesses,one need to be very careful.you just stated that he wanted you to start everything from scatch.hm I just hope he won't bring another person to replace you after you're successful in it.no other way than to get a LEGAL lawyer. Shikena

onatisi:
You are not into any partnership, you are an employee of the business owner who happens to be the financier. What you should be talking about is the best employment agreement which will favor you that you should tender.

Really......Guys..what do u think of this?

TWOWAYMIRROR:

It was registered...and No i was not listed as a shareholder

so whats ur stand in the company? Well draft the agreement with a lawyer involved.

I am into insurance in case you are interested

TWOWAYMIRROR:
Hello, My name is Tony Buknor.
I am about going into a business partenership with a Boss of mine. He is the sole financier., i will be providing the technical and managerial expertise. This means that i will be running the business 100%, building the brand from a scratch..from choosing a name for the biz to creating logos,hiring of staff etc.
We agreed to do an agreement..so im asking all the sound business professionals and business lawyers in the house to help me iron out what they think will be a reasonable condition of the partnership, including the sharing of the profits /loss. And other important clauses of the agreement.
I know i will get a lawyer..but i seriously rely on niralenders to guide me on what my conditions should be on my part of the agreement.
Thanks
.TONY
Modified:..we are going into phone business...sales,repairs..on a big scale.in a shopping mall
cc: lalasticlala

TWOWAYMIRROR:

Really......Guys..what do u think of this?

look,the man is helping you. You don't have the money to invest because it is a scarce resources,if you say no the man can get 10 ppl who are better than you. So you aren't in a partnership rather make it an employee agreement.which will guarantee your minimum duration ,salary and other aspects of your involvement .if you start talking about partnership you will discouraged the man .or rather take the capital as a loan and repay back with interest

holler back OP

TWOWAYMIRROR:
Hello, My name is Tony Buknor.
I am about going into a business partenership with a Boss of mine. He is the sole financier., i will be providing the technical and managerial expertise. This means that i will be running the business 100%, building the brand from a scratch..from choosing a name for the biz to creating logos,hiring of staff etc.
We agreed to do an agreement..so im asking all the sound business professionals and business lawyers in the house to help me iron out what they think will be a reasonable condition of the partnership, including the sharing of the profits /loss. And other important clauses of the agreement.
I know i will get a lawyer..but i seriously rely on niralenders to guide me on what my conditions should be on my part of the agreement.
Thanks
.TONY
Modified:..we are going into phone business...sales,repairs..on a big scale.in a shopping mall
cc: lalasticlala

As big as wherever you live is, you can't find a lawyer abi

onatisi:
look,the man is helping you. You don't have the money to invest because it is a scarce resources,if you say no the man can get 10 ppl who are better than you. So you aren't in a partnership rather make it an employee agreement.which will guarantee your minimum duration ,salary and other aspects of your involvement .if you start talking about partnership you will discouraged the man .or rather take the capital as a loan and repay back with interest

His lawyer was the person that suggested partenership from the onset and he bought it...it remains to agree snd document it...thanks

Holy Spirit is interested in your business, take it to him in prayer, he will direct and lead you. He is the best Counsel you can seek. Tread carefully.

You need a partnership deed that will be drafted by a lawyer. You need to ensure that this is done for future purpose or dispute. Contact me on lovelytreasure21@yahoo.com for more info.

Hope you know that every parner in a partnership business has unlimited liability....And if fortunately enough u start the business never take a decision on your own that would be binding on other partners even when u are sure it might be ratified because pple can be funny...the sharing of net profit i one essential feature also

Please and PLEASE contribute even a little percentage of finance into your partnership or project for future reference.

You will thank me for this advise.

TWOWAYMIRROR:

His lawyer was the person that suggested partenership from the onset and he bought it...it remains to agree snd document it...thanks

In that case I suggest u work with his lawyer and have him draft the agreement, in order to put ur partner at ease and let his guard down a bit... but be smart wit ur negotiations. Pitch for a 60/40 sharing formula first (profit only of cos since capital is reinvested), persuading him dat its d best arrangement dat will motivate u enuff. Expect him (or his lawyer) to negotiate ryt back for a much bigger share and be ready to counter it politely and wisely. If worse comes to worst, settle at 70/30 but on d condition dat it all reverts back to 50/50 as soon as he has recouped his original capital investment.
Lastly, make sure u have written and signed copies of the agreement. Also get witnesses from both parties to sign. Hope dis helps.

partnership involves great risk and uncertainties comming out from the investors，when the the two factors start to take centre stage ，things may begin to fall defferently， by then the earlier documentation become heresy

So much to tell you...
But I can't because my consultation and professional fees will enter voicemail :'

TWOWAYMIRROR:
Hello, My name is Tony Buknor.
I am about going into a business partenership with a Boss of mine. He is the sole financier., i will be providing the technical and managerial expertise. This means that i will be running the business 100%, building the brand from a scratch..from choosing a name for the biz to creating logos,hiring of staff etc.
We agreed to do an agreement..so im asking all the sound business professionals and business lawyers in the house to help me iron out what they think will be a reasonable condition of the partnership, including the sharing of the profits /loss. And other important clauses of the agreement.
I know i will get a lawyer..but i seriously rely on niralenders to guide me on what my conditions should be on my part of the agreement.
Thanks
.TONY
Modified:..we are going into phone business...sales,repairs..on a big scale.in a shopping mall
cc: lalasticlala

If you don't have any agreement on ground there is partnership act 1890 which will still protect you, one thing you must know is that partnership business is just like a one man business (sole proprietorship) the ownership is the difference because ownership is two or more persons. Partnership business has a risk of unlimited liability of the owners (that is if the business is in debt ,the owners will have to bear the debt unlike in a company the where the owners will only loose what they invested. Partners will/may also loose personal property as the business is not separate from the owner . My advice for you is as follow.
* as the active partner you should be receiving salary.
* you may agree with your partner to charge interest on drawings (money in the business borrowed by any of the partner)
* share of profit and loss should be expressly stated
* issue of decision making should be ironed out
*both of you must be signatory to the account of the business.
*proper accounting records must be maintained
For more on this consult Midas touch via e-mail shaqirdin05@yahoo.com
dhayour1307@gmail.com

Let try to explain this in layman terms.....

Partnership is a type of business organization in which two or more individuals pool money, skills, and other resources, and share profit and loss in accordance with terms of the partnership agreement.

So Partnership is about what u bring to d table....

It's easier to share equity of the company if its has been for more than a year with financial record and report...then u can say what its worth before partnering...

But in your present case, u guys are starting afresh.... so all you have to do is valuation of what u are bring to d table ...your asset i.e ur I.T skills, sales skill, ideas etc... ur worth/ value per month/yr...Lets say u are worth N1.2million/yr as an I.T guru and other input in term of sales, consultancy N8000,000/yr giving a total value of about N2million but d business requires N3m for d startup n running which ur boss is bring to the table.... then its means u have 40% equity and ur Oga has 60% (Your equity/share will determine ur profit sharing percentage),

But if d business requires N8m for d startup n running.... then its means u have 20% equity and ur Oga has 80%
And since its not a employer agreement but partnership... u guys should agreed how/what/if to pay urself anything before u declare profit

Hope u catch d drift....