The 50/50 Ownership Myth—And Why It Can Destroy Your Business
“As equal partners, we split everything 50/50.”
That’s one of the most common—and most dangerous—statements I hear from new business owners.
Early on, it makes sense. You’re optimistic. You trust each other. Maybe one of you brings cash and the other brings time or expertise. You shake hands, split the equity, and dive in.
But then the business grows—and the balance shifts.
I’ve worked with founders who found themselves working 80-hour weeks while their “equal” partner coasted on past contributions. And when it came time to sell or separate, that 50/50 split meant handing over half the value of something they built almost entirely on their own.
The truth is, equal ownership rarely reflects equal contribution.
In this LinkedIn post, I offer free legal advice and break down three smarter ways to structure ownership so your partnership reflects reality—not just good intentions:
Sweat equity tracking
Performance-based profit splits
Role-based equity based on responsibility, not friendship
Swipe through the full post and learn more here:
If you’re in a partnership now—or planning one—review your structure. Adjust it annually. Make sure your equity reflects what’s actually happening in the business.
Let us make sure fairness is actually fair: www.lawpla.com
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