Question on business partnership and what is fair
Hello, excuse me if this is not the right place.
Myself (Person A) and a friend and future partner (B) are purchasing a very well established business.
A is providing all capital for the business loan down payment. ( 50,000 )
B is providing no startup capital but will be running business until A retires from current job and goes full time 50/50 with B.
Loan is 500,000 x 10 years ( company is valued at 850000 but current owner is friend of both of us)
A is drafting a rough operating agreement and is curious as to how much he is entitled to return wise for the 50,000 dollar investment into the business.
I know in shark tank they say X money for X percent in company plus this or that.
Can someone lead me in the right direction?
I am leading towards 10% return on capital per year so a 5000 dollar return yearly.
I will be contributing capital to the loan in return for ownership of company but that is not my concern at the moment, the answer to my current question will guide the rest of the partnerships operating agreement.
Thanks and I will try to provide info if needed, just looking to be pointed in the right direction, not looking to be talked down or out of anything.