Legal Question in Business Law in California

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.


Asked on 9/17/12, 10:14 pm

2 Answers from Attorneys
Joshua Hale Hale Law Group

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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Answered on 9/17/12, 11:36 pm

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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Answered on 9/18/12, 12:18 pm


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