Split profits between business partners based on ownership percentages and guaranteed payments.
before guaranteed payments
| Partner A — Guaranteed | $20,000 |
| Partner A — Profit Share | $130,000 |
| Partner A — Total (50.0%) | $150,000 |
| Partner B — Guaranteed | $20,000 |
| Partner B — Profit Share | $130,000 |
| Partner B — Total (50.0%) | $150,000 |
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Remaining = Total Profit − Guaranteed Payments
Each partner: Guaranteed + (Ownership% × Remaining)
Partners can split profits by ownership percentage, capital contribution, hours worked, or any custom arrangement agreed upon in writing.
A guaranteed payment is a fixed payment to a partner regardless of profits, similar to a salary. It's deducted before calculating distributable profits.
General partners pay self-employment tax on their share of partnership income. Limited partners typically don't unless they receive guaranteed payments.
Not necessarily. Many partnerships separate economic rights from ownership. You can have equal ownership but unequal profit splits based on contributions or roles.
Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.