re: Business investment question

There is really no hard and fast answer, unless it's an S corp. If it's an S Corp, then everyone is treated for everything by their stock holder percentage. If you own 10 percent of the stock of an S corp, then everything is 10 percent - you get 10 percent of the income allocation, 10 percent of the loss allocation, 10 percent of the distributions, 10 percent of the capital calls, etc.

If it's a partnership (including a LLC taxed as a partnership) you can basically structure any part of the deal any way you want. You can have one person get all the allocation of losses until their capital account hits zero. You can have unequal distributions. Guaranteed payments. Etc.

C corps are in the middle.