Hi all- 4 people came together to start up a web based business that has very low overhead and a long term upside potential to fully replace the household income of each partner. The 4 partners are made up of 2 married couples. Two of the partners (married, one household) choose to quit their jobs to help push the business along quicker. The other partners were not part of that decision, but thought it was a good idea at the time. At the time the 2 partners quit their jobs (a few months apart) the business was making no money and there was never any formal conversation about how to manage the money. As a result, the other partners (married in one household but still with other jobs) offered to pay for the operating expenses like server costs, etc. Things went along just fine for about a year and then the revenue potential was starting to be realized. The two partners how had quit their jobs began feeling an inequity in that their 25% of the company wasn't enough. They worked all day every day and earned nothing for it. The other two partners had typical 8-5 jobs and worked on the business after work hours and on the weekends. The 2 partners who had quit their jobs initially asked for a deferred repayment of their burn rate for cost of living. After a lot of conversation the two partners with other jobs reluctantly agreed (verbally, no amended contract yet). A few weeks later, the 2 partners who had quit their jobs bring up the topic again and felt that the deferred repayment of their burn rate for cost of living was not adequate. They felt they now needed a deferred salary for their time. They demonstrated this by putting a spreadsheet together with the annual household income from the two partners with jobs versus the two partners without jobs. Over the course of the year, clearly the partners with jobs brought home significantly more money. It was pointed out to the partners without jobs that this was a lifestyle choice they made and was not a request of the company. Additionally, the two working partners felt the deferred debt on the balance sheet would only slow down the future growth of the business. After several weeks of debating, it was finally agreed to try a deferred salary of $70k a year for each of the two non-working partners, while the working partners would take $0 salary. The logic was that if the company could pay each partner $70k, we could all quit are jobs and work full time for company. With a lot of reluctance everyone agreed and the two non-working partners began drafting a new partner contract. When the contract came out, the effective start date for the non-working partners pre-dated when they quit their jobs. Additionally, they added in clauses that stated if the company could pay $70k to the working partners that they need to quit their jobs immediately or give up their 25% share. As you may be able to tell, I am one of the working partners in this scenario. I feel we've caved in way too far and am prepared to go back to the non-working partners with 2 options. 1) Drop all deferred salary and deferred repayment of funds. Bottom line is we don't make plans for the business with money the business doesn't have. 2) Both working partners walk away from the business and give our 50% share of the company to the other two partners, but they need to repay the ~$4500 in expense accumulated to date. All of the time and effort we've put in over the last 2 years is a donation. A 3rd option has presented itself as well. We've begun talking to 2 additional people (also married and same household) about helping with the business. If we share partnership with them, we could all have 1/6th share in the company. Under this arrangement, each household would have 1 person work for the business and 1 person work for another employer to support the household until the business could replace that income. The issue with this option is that the non-working partners don't want to go back to work and feel their value to the company couldn't be replaced in a timely manner. Please give your feedback on this situation, we really don't want to part ways but this is becoming frustrating for all involved. Thanks!