Sister Concern Company Agreement

Over the years we have had a great working relationship and my bosses have always been fair to me – have given me more responsibility and have been compensated for it. About a year and a half ago, I was offered to become a partner of the company – there was talk of giving me a small percentage (1-3%). When I got married recently, my wife and I started thinking about moving to the United States. My bosses have always dreamed of opening a second branch of the studio in the United States, but the right opportunity never presented itself. When I told them about my moving plans, we immediately started talking about the fact that I was going to open the studio in the United States. My main task would be to recruit new companies and lead the US projects – while most of the technical work is still going on in the main studio. All interested parties thought that I would first be the only one working in the American studio and only when it becomes necessary to hire (due to workload and other factors). I will soon begin more specific negotiations. This is the first time I`ve been through such a thing.

The advice I`m looking for is on the partnership structure, salary, percentage of sharing and moving package. Of course, at some point I will consult a lawyer who will look at the contract, but I wanted to get preliminary information for the negotiations. Some information to note:It has already been agreed that I will be a partner in the new “sister” company I will not invest capital myself, my bosses will fully finance this new company It has already been agreed in principle that I will receive a salary with partner dividendsI assume that I am the active partner, because I will be the most involved in the daily business. My bosses (partners) will provide advice and guidance and help with decision-making, but I don`t think they will be involved in this way in the day-to-day business. Does that make her a sponsor? QUESTIONSWhat is a fair percentage distribution in this situation? My bosses even mentioned a split of 33.33%.