If a Physician Owns 51% of My Med Spa, Does That Mean I Get 49% of the Revenue?

If a Physician Owns 51% of My Med Spa, Does That Mean I Get 49% of the Revenue?

If i’m giving 51% ownership to the physician, does that mean that the physician takes 51% of the revenues and vice versa? Does it mean that I take 49% of the revenues?

No, it doesn’t. As owners of a corporation, you as shareholders, you’ll have decisions to make and one of those decisions is how the owners will be compensated. And what we normally see is the owners compensated as employees pursuant to an employment agreement for the professional services. There’s no requirement that the shareholders issue distributions or dividends to owners on a particular schedule of remaining revenues there. You could do that if you wanted to, but there’s no requirements of that.

So does 49-51 mean each person takes home that part of the pie every month? No, it doesn’t. You have some flexibility there.

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