You have the means for production, so you are the owner or capitalist. If you make a partnership and you are a silent partner (no working)the other does all the work he/she is entitled to 50%, but in a split you remain with the means they get only a share of goodwill.
It seems to me that you have trouble to find a photographer to work for you. Or worse you are not doing well and think bringing in the competition will generate more money.
Give him a loan of half the amount of your investment and he uses this money to come in. You have spent no money but he owns you this amount. Deduct part of it from every event.
White Balance so easy, even our 5 year old can do it.- Melissa Strickland
After spending almost 20 years in a business partnership with my best friend and knowing the pitfalls of even that I suggest no matter what you do, put it in writing.
As to how to deal with the process, I would simply hire the guy. Figure a sum of money that is worth his efforts and profitable for both him and you. I think if you try to determine a % of profits then one party will end up unhappy with the end results. Splitting 50/50 isn't fair to you who supplies the client/venue. Then there is the issue of who owns the copyrights... put this in writing too and have the copyright held by your company. Make his efforts a work for hire arrangement. You will need to compensate him fairly for his efforts. One last point is insurance. You need to make sure your insurance covers his actions, as an employee this should not be a problem.
White Balance so easy, even our 5 year old can do it.- Melissa Strickland
As he is supplying his own equipment for the job, I suggest bringing him on as an independant contractor. It will save you the headache of having to deal with taxes for him - he can handle that as he would any income from a job he shoots himself.
As others have said -
Work for hire arrangement.
Figure a reasonable and fair fee and pay it.
Stipulate that he can promote only your services at the event, not his own.
Get it all in writing.
A partner would invest in the business in some substantial fashion and thus be sharing the risk of the business. I don't see how you providing pretty much everything (including the job) makes him eligible for partnership status simply because he can bring his own camera and shoot.
That's stringer status, not partner.
Regards,
Micheal
White Balance so easy, even our 5 year old can do it.- Melissa Strickland
Hi Carl when i work for another photographer, he gets the job i supply the equipment that is DPS CLICK AND CP8000 dyesub printer,background,lights,camera D100. I take the photos, sell them, his wife then takes the money, puts 9x6 in folder and we have a 50/50 split, I also provide the paper they supply the mounts.This would be his 2nd or 3rd job which he has his own setup.I do work hard because if i don`t I dont get much money. So i think you have to come to a different cut with your friend unless he is geting all the work.
White Balance so easy, even our 5 year old can do it.- Melissa Strickland
Just be careful with the term 'work-for-hire' in California. California law basically says that a work-for-hire contract when IP (Intelectual Property) is transferred to the client, there's a very high chance that no matter what else was agreed upon in the contract that the photographer/writer, etc basically is an employee for workers comp, disability, FUTA, and FICA.
Be careful with some of the verbage in the contract! Grab a copy of Nolo Press's, "Hiring Independent Contractors". Good book with lots of clear examples. And since they're based in Bezerkley [img]/ubbthreads/images/graemlins/smile.gif[/img] they really know CA law. It mentions all the weirdness with other states as well, but since CA is such a horrible state to business in... CYA!
good luck,
brian
White Balance so easy, even our 5 year old can do it.- Melissa Strickland
Hi,
1- you are both honest businessman so you both have the appropriate licenses to conduct business in the state
2- you both file taxes on income from this photo business.
Undoubtedly your accountant can tell you the real (+ depreciation) of your equipment (total investment in capital), your profit and how a "partner" will effect your tax status.
Your partner should be able to bring his accounting/tax information and sitting down with your accountant you should be able to realistically assess what he is giving or what he needs to give to the business.
Do NOT forget the value of "goodwill", your or his goodname in bringing more or bigger business, your accountant will be able to give that a monetary equilavent.
Your accountant should be able to tell you the value of incorporating the business (with your partner) to legally protect YOUR investment, liability insurance, payment of wages, equipment maintanence and upgrades... and should the partnership fail, who gets the customer base?
As mentioned before, get everything in writing, at the least talk to an attorney.
good luck
MP
White Balance so easy, even our 5 year old can do it.- Melissa Strickland
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