A Couple of CC Questions Relating to Profit Sharing and Expenses

[rfnel]

@Mark
Thanks for your response. Thus far, he's been handling the legal rigmarole of bringing me in as a partner. From what I understand, it's possible to bring a partner into a CC with their skills/expertise as a contribution. That's the angle that he's been working from.

I'm still coming to grips with the terminology of it all, so feel free to correct me when I get it wrong. As long as everything is factored into the equation when it comes to remuneration, that's fine by me. In the same vein as the ADSL example, if the member remuneration is based strictly on profit after expenses - say each member of a CC gets a company car. Member A gets a Jaguar at R10 000 p/m, while member B gets a Tata at R1 000 p/m. If the CC makes R20 000 p/m of which R5000 is profit (after company cars and other expenses), it wouldn't be entirely fair for member A to get a R3500 salary while member B gets R1500.

We are in the process of putting together a formal document, and we're trying to determine exactly what should go into it, hence this thread.

@Justloadit
You make a valid point. I've been meaning to start my own company (in the same industry) for quite some time (I already had the business plan drawn up last year), but my situation with my employer prevented me from getting it off the ground. Since I already had a bunch of plans and products lined up, I'd like to bring them to life through my friend's company - however, I don't want that to mean that I own less than 50% of my own ideas. This is one of the things that I am particularly concerned about. Because I have a lot to contribute, I saw this almost as a merger between my (conceptual) company and his company.

Your post has prompted me to start thinking in another direction - instead of him practically giving a part of his company away, perhaps we should look at registering a new company (not a CC), in which I can have a 50% stake and his CC can have a 50% stake. This should be a win/win situation. Any thoughts on this?