Originally Posted by MJ Services
hire him as an employee with a low salary then do a profit sharing or bonus system on top of that? I like the idea of just subbing him out and maybe you can give him a commission for any leads he finds that lands you work. I'd do something like this for a year or so to see if it'll work before rolling things in to one. It'll be much harder to split one company up if things don't work.
Agreed on this. I wouldn't use him as a partner, but as an employee with profit sharing so that he gets paid more like an owner without him actually being one.
Partnerships rarely work out, but to make an employee accountable for the amount of profit coming is a nice balance.
Dave Ramsey has some great advice about this subject. Even when multiple people want to start a business together, he advises to put the business in one persons name, and let the other take a profit share.