When two founders set up a corporation, or a husband and wife start a business together, the first instinct is usually a 50/50 split. It feels fair. It is easy to explain. And for the first year or two, it usually works.

Then the first real disagreement arrives. Do we take on debt? Do we accept the offer to buy the business? Do we hire a senior manager? With two equal shareholders and no tie-breaker, nothing moves. I have seen good companies lose months, and sometimes the relationship, over exactly this.

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By Matthew Dinian, MAcc, CPA, CMA, CMC, PMP, Founder, D-Advisory. For educational purposes only; not legal, tax or financial advice.