Splitting the ownership and responsibilities in a company when one partner will invest more money but be less involved in operations requires careful consideration and negotiation. Here are steps you can take to determine a fair and equitable arrangement:

Discuss Goals and Expectations: Have an open and honest conversation with your potential business partner about each of your goals, expectations, and levels of involvement in the company. Clarify their vision for the business and how they see their role evolving over time.

Evaluate Contributions: Assess the value of each partner's contributions to the business, including financial investment, expertise, time commitment, and resources brought to the table. Consider not only the initial investment but also the potential future contributions each partner can make to the company's growth and success.

Consider Ownership vs. Control: Determine whether ownership percentage should directly correlate with decision-making power and control in the company. In some cases, a partner who invests more money may have a larger ownership stake but may not necessarily have a proportionate level of control over day-to-day operations.

Negotiate Ownership Split: Based on the contributions and expectations discussed, negotiate a fair and mutually acceptable ownership split. This could involve allocating a higher percentage of ownership to the partner making a larger financial investment while ensuring that both partners feel their contributions are adequately recognized and valued.

Define Roles and Responsibilities: Clearly define the roles and responsibilities of each partner in the company. Outline the areas of expertise and decision-making authority for the partner involved in operations and establish clear communication channels to ensure alignment and collaboration between both partners.

Draft a Partnership Agreement: Create a comprehensive partnership agreement that outlines the terms of the partnership, including ownership percentages, decision-making processes, profit distribution, dispute resolution mechanisms, and procedures for exiting the partnership. It's advisable to seek legal guidance to ensure the agreement is legally sound and provides protection for both partners.

Revisit and Adapt: As the company grows and evolves, periodically revisit the partnership agreement to ensure it remains fair and relevant to the changing needs and circumstances of the business. Be open to renegotiating terms if necessary to maintain a positive and productive partnership.

By following these steps and engaging in open communication and negotiation, you can establish a fair and equitable ownership structure that reflects the contributions and expectations of each partner while setting the foundation for a successful and collaborative business partnership.