I own a sole-proprietor construction business in CA and am a disabled veteran. I have been asked to form a corporation by a group of investors seeking to use my disabled veteran certification to pursue large construction contracts. I would own 51% and will not be putting any funds...my contribution will be that sought after disabled veteran certification. My business is very small with an average 3 year revenues of about $250K. My question is how much should I expect to receive up front and as a salary.
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The question whether you realize it or not is difficult to quantify. You need to know more about whether you will be taking a share of the profits on all contracts.
I have handled similar contracts before, I would be happy to discuss this at length with you in a free telephone consultation.
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Your question is not a legal one at all, and unless you find someone who has done a LOT of private executive compensation contracts in the construction industry, I wouldn't trust ANY lawyer to answer your question. I have spent 25 years in the construction industry, working for clients ranging from the size of your company all the way up to Obayashi America. Yet I couldn't begin to tell you what the compensation packages for any of them are or should be. That is the kind of thing that an accountant in the industry, or a compensation manager would know. I could certainly advise you on how to structure the deal once you know the numbers you want to agree on, but no lawyer I have ever met is qualified to advise you on what your compensation numbers should be.
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