ADDING PARTNER TO A RUNNING PROFITABLE BUSINESS

I am solely running profitable business of Accounting Software for last 12 years.  I have established good clientele base and getting recurring income in the form of Renewal/Up gradation apart from selling new licenses. To expand business, I am looking to take a partner having 25 years of  Accounts Knowledge. 

Please guide me what are the parameters/areas I have to look into.  Please also guide me how the Financial part and Profitability is shared. 

 

  

Replies (1)

To add a partner, you must draft a supplementary partnership deed defining capital contributions, profit-sharing, and roles, and handle any necessary statutory filings (especially if converting to an LLP). For finances, balance partner remuneration (salary) and interest on capital as deductible business expenses to optimize tax, while ensuring the profit-sharing ratio fairly reflects your 12 years of established business value. Always consult a CA to formalize these terms in a legally binding agreement.

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