Post on Medial

If you're talking about the profits only then what you should do is divide it into 8(if 6 people). you should have some cash in reserve that's no one owns but the agency itself

I think you should keep people on the promise of dividing money, or you'll get this much something in money not in equity as it might look easy and you won't break a penny if you don't earn but it's hard to manage so many co-founders

If it is not registered or nor established anywhere so, i guess it should be equals to workforce and effort, the guy who is doing hard work and giving full efforts he himself should get high share and rest of other should divide as well according to their work

you should have at least 1/3 to 2/4 equity in your co. just a suggestion don't dilute too much.

as per their capital ratio

Valuation and equity split are different. For a business with 5 founders, you decide the equity split based on contributions like effort or investment. If the business needs funding (e.g., 1 crore), everyone can contribute based on their equity share. If someone invests more, their equity may increase, and others' shares will adjust accordingly. You can't take money directly from revenue; only profits can be distributed, and even then, either as dividends or by adjusting equity. Equity represents ownership and authority in the business, and its benefits are realized during growth, profits, or when the company is listed or sold.

The question is not clear, I believe you have a misunderstanding about the concept. The simple answer is 5. Share holders are 5 humans who separately holds 5 pieces of the company. Revenue, expense, profits, everything will be by the company, and hence shared among the 5 shareholders, and used as decided by the company Theres no separate company's needs met by 'one founder'. If one of the founders has additional funds, he can allocate the funds to the company's account as an investment to be used for company's requirements. So expenses does not incur from founder's account, but company's account. Profit sharing is also decided by the company, shareholders cannot withdraw as they wish

Firstly if you are giving shares then it'll be divided with 5parts and all the expense that company will take will be done by all shareholders if it's not generating revenue. if it's generating revenue, get the salary model - ek salery pay Karo sabko ( bacha hua Paisa company expansion me ) that's simple and logical way.

Bhai salary pe raho na, saara hi cash in bank divide karte rahoge month on month? No plans to hire further or grow the team?