The agreement proposed is that 30% goes to overhead (employees, insurance, rent, utilities and all), 70% revenue is split between myself and the company ( 35% ea.). The company is doing all of the financial backing and I am not investing any capital at this point. The idea is to spin off my company into its own after a certain profit margin is reached. I have full control of the division that my company is in. The company wants to use a seperate line in quick books to keep track of the finances instead of opening another business account.
A lot of this is to keep taxes at a minimum and I trust them at this point but have to be smart.
The company has been in business over 15 yrs. with a long term good standing in the chamber of commerce. I am hoping to utilize the companies credibility to get me going. It is my dream to start this business and I have an opportunity to do it within this corporation.
I am also thinking of asking the corporation for an upfront "Good Faith" payment until we are able to generate revenue.
Does this seem like a fair agreement? Are there any suggestions?