Tuesday, August 16, 2011

Question about family business? -

My cousin has a farm that is worth $100k (total assets-total liabilities).I want to invest $10,000 (10%) in it in order to gain a controlling interest.Do I need an accountant to do that?I am not going to work in the farm, I am only going to invest money in it.The farm makes a net profit of $30,000 a year.How much profit should I get? 10% ($3,000) or less?

If the ownership is not being transferred to you over time then you should get a return on your investment based on what you invest, if he s going to give you 10% return on your investment then it would be $1,000 per year.

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