51/49 Business Partnerships | Who Gets the Majority Stake of Equity?

[@jdaprince14]

Very straight forward and well articulated!

[@BrettCenkus]

Thank you!

[@weightlossexp]

I need some help in my business. Talking about a buy out and I want to make sure I'm thinking correct

[@MumaMiami]

What makes it 51/49? Do I need a contract or is it simply the payroll?

[@caenterprisellc6922]

I currently own 100% of the company, but there will be 49% equity available in the near future.

[@danielbarker37]

÷1.520=380=5756 🇺🇸

[@danielbarker37]

÷1.520=380=5756 🇺🇸

[@wax4dadsglossking28]

Thank you. Loved this info!

[@realtopia2479]

you're welcome. Glad you enjoyed it!

[@MumaMiami]

Should I have a contract notarized that states 51/49 partnership?

[@olgasaldivar8543]

How can I get advice advice on partnerships with 2 more people (total of 3) how can I hire profesional advice before we open the business?

[@bobfisher9452]

Brett, I am currently looking at buying a partner out of our SDVOSB, I am the veteran w majority ownership. We have been in business since 2016, my partner is at a point of looking at retirement. We do have a buy sell agreement and have evaluated the worth of the company. My question is, do I consider value/or worth between owners? Being the Vet we have more contracts or revenue from government contracts than the civilian side of our business, I would say it’s 70/30 ratio. Unfortunately this was not decided in our buy sell agreement. Thanks your videos are very informative 👍

[@katherinestudiokin1097]

Oh, I hope this is a simple question! My husbands partner had 51% with my husband having 49. Just them two, I was not included. However, the 51% owner took any and all money out of the bank account with zero notifications. There was no expense report to show where the money was going. He stated that he didn’t have to because he was 51%. This money included payroll money, money put away for taxes, money put away for expenses for the business . Is this true ? Could he leave a thriving business destitute because he wanted to use the money to open another business. We are in California.

[@BrettCenkus]

Katherine, Your husband's partner's actions are likely not okay. The starting point for analyzing these issues is the business' governing document(s), e.g., a Company Operating Agreement if it's an LLC. That agreement might allow his partner, as the 51% owner, to make decisions about using company funds for company business without your husband's approval/knowledge. That is possible, although I'd stop short of saying it's likely. However, the agreement would almost certainly not permit the 51% partner to use the funds for personal reasons. The wording necessary to justify taking funds and using them other than for the business would be atypical. If they do not have an agreement, how the funds are used is probably irrelevant, i.e., the 51% partner's actions are likely improper regardless (this depends on the type of entity, applicable governing authority (manager vs. managed), etc.). Ultimately, you'd want a California business attorney/litigator to look at the agreement and record of what happened. Still, I hope my info is of some help to you as you decide where to go from here. Brett

[@thehydroflightshow]

great information

[@CoachGomez-y6v]

Can you be 49% on Paper, but be 50% in reality for most things??? thanks!

[@BrettCenkus]

What do you mean exactly by "in reality?" A wise 51% owner in a two-person business will take steps to ensure that their 49% co-owner feels heard and respected. IMO, not doing that is the biggest risk of the 51/49 ownership structure. However, if it's not on paper, it is based on trust and could change at any time.

[@masoodrana9425]

Thank you.

[@BrettCenkus]

you're welcome!

[@sucio130]

So I'm the 49% The other person used his lawyer for all the paperwork . I can't get in contact with that lawyer . How do I get a copy of my separation agreement?

[@BrettCenkus]

Are you saying that you signed a separation agreement and asking how to get a copy of it? I don't have any ways other than through the attorney who prepared it or your former business partner (the other party who signed it)

[@sucio130]

@@BrettCenkus that's exactly what I mean....Jesus im screwed 😪 We sign the paperwork with his lawyer ( business lawyer )

[@BrettCenkus]

@@sucio130 Does the lawyer have colleagues you can contact? It shouldn't be too though to get a hold of that attorney to send you a copy of an agreement you signed.

[@amine3193]

Thank you for the information. But if the 51 owner decides to shutdown the business, can he do it?

[@BrettCenkus]

Amine, first look at any governance documents (e.g., Bylaws, Stockholders' Agreement, LLC Operating Agreement). If those exist, they should address the question. If they don't, the default state "corporate" law will decide it. Generally, the 51% owner can shut down the business (in the states I've seen), although consult the governance docs or the actual state code (in Texas, it is the Business Organizations Code, in Delaware it's the Delaware General Corporation Law or the Delaware Limited Liability Company Act, etc.)

[@davidmcpherson6214]

Great insight!

[@BrettCenkus]

Thank you!