How do you split profits in a small business partnership?
How you will split profit NEEDED to be decided before you became and or formalized your partnership reflected in your partnership agreement. As a general rule if it is 2 people in the partnership it is 50/50 and or 3 people 1/3 each after expenses. If one person brought capital to the business this is normally paid back to that partner as a loan with interest (expense) not affecting the profit split between partners.
