Woman works 5 hours a week and demands 50% co-ownership in sister's company.
Never mix money and family. Sure, 'family businesses' are a thing, BUT you never hear the dark side of the unsuccessful ones. On a popular Reddit thread, one woman discovers why she shouldn't have mixed family and business.
AITA for not giving my sister 50% of my small business?
That's right in the middle of the pandemic.
I started a small business in July 2020, and about eight months in, I hired my older sister to do some administrative work for me. She had recently had a baby and was not planning on returning to work but still needed a little money.
Not too bad in terms of responsibilities.
She asked if there was anything she could do to help the business, and I said yes. Her responsibilities included answering some emails, organizing existing spreadsheets, and reaching out to other companies (which was her background, but none of the reaching out led anywhere).
That's a pretty easy schedule.
She clocked in about 5-8 hours of weekly work, and I paid her $25/hour. I still created the product for the client, answered follow-up emails from the client, handled the financials, and ran the social media and website. About a year in, we decided to do a “rebrand.”
That's all it takes to own a company?
We hired someone to make a new logo, and I built a new website. About five months before the rebrand launch, she asked if we could “get something in writing” (an employment contract) and expressed interest in owning a part of the business.
5-8 hours of work can lead to that ownership split?!?!?!
I told her we could get something in writing, and I would think about the part ownership. Three months later, I suggested a 70/30 split, to which she disagreed. She said she was looking for a 50/50. I said I was not comfortable with a 50/50, and the highest I would ever go would be 51/49. She responded, “what’s the point of being part owner when your decision would still be the final say? Again, I told her I would think about it.
This makes more sense.
Two weeks before the rebrand launch, I talked to my husband and commented about giving her 50% to keep the peace. He advised me to write down my financial contribution to the company vs. hers. The economic (let alone time commitment) was staggering. I presented her with a spreadsheet of tiers to buy into the company. 10% for free and then tiered payments all the way up to 49%.
Someone is good at stretching the truth.
She was furious, saying that I had blindsided her, betrayed her, and even went as far as to say she built my business. I apologize for not bringing it up until the week before the launch. She refuses to speak to me. She refuses to come to family thanksgiving or Christmas, and it’s tearing my family apart.
Battered_Mage says:
NTA (Not the A**hole). She was an employee. You paid her a wage to do a job. You have a financial interest in the company, if she hasn't invested her own money why does she think she's entitled to any form of ownership interest?
OkCaterpillar7770 says:
70/30 was more than generous!
Why should she get 50% if she has not done 50% of the work? NTA.
And not speaking to you is highly unprofessional. Imagine if she had 50% of the company and something didn't go her way. I'd advise you to give her exactly 0% of the company, and she should probably find employment somewhere else.
sswishbone says:
NTA - 1) Your company that you founded 2) Nowhere had she talked about being a true shareholder with her money in the company. She's trying the old 'we're family' perspective, when you're not, you're co-workers