Starting a Business Multiple owner LLC - Percentage of ownership disagreements

[Thankful]

My husband and I signed an agreement to be a third party distributor of A product. We will buy the product at wholesale and turn around and sale it as a wholesale product to retail stores for a profit. We decided to include two family members and create and LLC with 4 managing members. (My husband, Myself and two family members.) My husband and I want the percentage of ownership to be split 4 ways at 25% each. The family members are wanting it to be split 3 ways at 33.333% with my husband and I sharing 33.333%.

I feel since my husband and I will both will be selling the product and taking care of the accounting etc for the business that we should have our own 25% profit. We are also spliting the costs four ways to keep the financial investment at 25% each.

The family members will only be responsible for selling the product and investing 25% financially. My husband and I will be responsible individually for our sales of the product, placing all orders and all of the accounting.

Am I looking at our percentage completely wrong and should we as a married couple be considered as one? I am trying to see this from my family members point of view but really having a hard time. I appreciate any advice. Thank you kindly.

 

[army judge]

If you want 25% equitable ownership, the other two don't, just don't do the deal.

You can hire two people, or seek two different partners.

The other two want to control 66% leaving you and hubby with 33% ownership.
Effectively, you'd dance to their music.

I'd wish them well, and go it alone.

If you can't afford to do that, and need the investment of the other parties, don't do the deal.

Don't do it, if you can't fund it.

New businesses die more often because of undercapitalzation than poor management.

This deal portends that, and familial jealousies.

I'd walk away, before you have more regrets.

One last comment, the ONLY way to look at a business proposition is from a business perspective.

To paraphrase the old Tina Turner song, "what's family got to do with it?"

Nope, this is business.

Don't do this deal.

If you need money, don't do the deal, because when you fail, you'll still owe the money.

There is no such thing as just ordering and selling in your own business.

You want that job, Frito-Lay and Schwann's use the jobber/delivery model.

The business proposition might be something you want to investigate before throwing good money chasing no money.

 

[Thankful]

Thank you very much for your insight and taking the time to reply. It was helpful.