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It depends on a bunch of other things. Did the silent partner contribute anything to the partnership? Does he do anything that would affect the profitability of the company? Usually this is determined up front by the 3 partners, but if the person merely invested cash, has no input into operations, etc then a lesser share of the profits AND losses would typically be assigned to him, based upon the premise that he contributes nothing to the profitability or operations of the company. He merely made an investment and retained a small ownership percentage to protect his investment, his earning on the investment would be a cut of the profits.

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Q: What is the fair profit percentage of a silent partner in a new three person business?
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