Qualifying party

[kwired]

Well I'm concerned about the risk and yes I want the money. I guess what I'm asking is does the money match the risk. He has me covered under his insurance and I also have my own insurance we also wrote up a contract stating I own 30% of his company however I dont have any idea how much he makes. I could imagine in on the scale of 500k or better with 100k in overhead maybe more.

If you are an "owner" you should have access to financial information. You should also be getting whatever distributions of the profits were agreed to in the organization of the company. One would think if you were 30% owner and someone else was 70% owner - you likely would get about 30% of profits that are to be distributed to owners. (not total profits, some typically go back to the company)

I can't say I am an expert in this but I think even investors that own less then 1% of a corporation still get to see the main reports on financials of that corporation and have a fair idea of where the funds are going. Being a 30% owner and not knowing much about the financial side of the organization doesn't seem right to me, that is a big enough share you should be more directly involved in decisions of how to operate that company. You likely should have had to invest some of your own funds to become part owner. Family owned businesses maybe you inherit a portion of it if you are family.

 

[ggunn]

...we also wrote up a contract stating I own 30% of his company...

Well, do you?