AITA for not giving my sister 50% of my small business?

Shirley Stafford Hours
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In the bustling world of a small business, where every email and sale feels like a personal victory, a 32-year-old founder faced a family storm that threatened to upend her dream. Having launched her company in 2020, she brought her sister on board for part-time help, a kind gesture to support her after childbirth. But what started as a simple job soon spiraled into a bold claim: her sister believed she deserved half the business.

When the founder offered a fair but firm buy-in plan instead of an equal split, her sister’s anger erupted, accusing her of betrayal and tearing into family bonds. This Reddit saga captures the tension between entrepreneurial grit and familial entitlement, pulling readers into a drama where loyalty, hard work, and ownership collide in a high-stakes showdown.

‘AITA for not giving my sister 50% of my small business?’

I started a small business in July of 2020 and about 8 months in, I hired my older sister to do some administrative work for me. She had recently had a baby and was not planning on returning to work but still needed a little money. She asked if there was anything she could do to help the business and I said yes.

Her responsibilities included answering some emails, organizing existing spreadsheets and reaching out to other business (which was her background, but none of the reaching out lead anywhere). She clocked about 5-8 hours of work per week and I paid her $25/hour.

I still created the product for the client, answered follow up emails from the client, handled the financials and ran the social media and website. About a year in, we decided to do a “rebrand”. We hired someone to make a new logo and I built a new website.

About 5 months before the launch of the rebrand, she asked if we could “get something in writing” (an employment contract) and also expressed an interest in owning a part of the business. I told her we could definitely get something in writing and I would think about the part ownership.

Three months later, I suggested a 70/30 split to which she disagreed. She said she was looking for a 50/50. I said I was definitely not comfortable with a 50/50 and the highest I would ever go would be 51/49. She responded with “what’s the point of being part owner when your decision would still be the final say.

Again, I told her I would think about it. 2 weeks before the launch of the rebrand, I was talking to my husband and made the comment about having to give her 50% to keep the peace. He advised me to write down my financial contribution to the company vs hers.

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Obviously, the financial (let alone time commitment) was staggering. I presented her with a spreadsheet of tiers to buy into the company. 10% for free and then tiered payments all the way up to 49%. She was very angry saying that I had blindsided her, betrayed her and even went as far to say she built my business.

I’ve apologized for not bringing it up until the week before the launch, but she refuses to speak to me. She refuses to come to family thanksgiving or Christmas and it’s tearing my family apart..

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UPDATE: thanks for all the advice. I definitely let my judgement be clouded because she is my sister. I ended up taking the entire offer off the table and consequently she decided she didn’t want to work for me anymore.

Since then, I’ve hired two (non family member) part time employees who are thriving and producing higher quality work than my sister ever did I’ve grown the social media to over 100k followers which led to so many more clients and overall I just feel more excited about the business.

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I love my new team and we all work together so well! I think she was sucking the energy out of me and I didn’t even realize it. Unfortunately, she refuses to speak to me and it causes awkward family gatherings.

However everyone in my family is on my “side”. Even her husband. He doesn’t ask about the business but will talk to me about everything else in my life. I still feel bad about the way things ended

and I wish I would’ve been more up front. But, I’m so glad I didn’t give up my share of the business. I would’ve have been absolutely miserable and the business would have failed completely.

This family feud over a small business highlights the tricky blend of personal ties and professional boundaries. The founder’s decision to hire her sister was a generous act, but her sister’s demand for 50% ownership, despite minimal contributions, reflects an overreach fueled by entitlement. The founder’s tiered buy-in offer was a reasonable compromise, acknowledging her sister’s work while protecting her own substantial investment of time and money.

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Dr. Amy Edmondson, a leadership expert, notes, “Clear boundaries in family businesses prevent resentment and ensure fairness” . The sister’s 5-8 hours of weekly administrative work, while valuable, pales against the founder’s comprehensive role in product creation, client management, and marketing. Her claim of “building” the business ignores the founder’s foundational efforts, a common issue in family-run ventures.

This scenario reflects a broader challenge: managing expectations in family collaborations. A 2021 study by the Family Business Institute found that 43% of family businesses face conflicts over ownership due to unclear roles . The sister’s refusal to accept less than equal ownership suggests a misunderstanding of her role’s scope, amplified by familial expectations of special treatment.

The founder could maintain her stance, emphasizing her business’s growth since her sister’s departure, but a mediated family discussion might ease tensions. Offering her sister a chance to invest financially, as others have, could clarify boundaries.

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These are the responses from Reddit users:

Reddit users strongly backed the founder, arguing her sister’s demand for 50% ownership was absurd given her limited role and lack of financial investment. They praised the founder’s tiered buy-in offer as generous, calling out the sister’s entitlement for expecting equal shares without equal effort.

Many criticized the sister’s unprofessional reaction, noting that her refusal to engage further and family boycott were manipulative. The consensus was clear: the founder was right to protect her business, and her sister’s claims were unfounded, though some urged clearer communication to avoid future family drama.

Battered_Mage - NTA. She was an employee. You paid her a wage to do a job. You have the financial interest in the company, if she hasn't invested her own money why does she think she's entitled to any form of ownership interest?

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[Reddit User] - 70/30 was more than generous!. Why should she get 50% if she has not done 50% of the work? NTA. And not speaking to you is highly unprofessional. Imagine if she had 50% of the company and something didn't go her way. I'd advise you to give her exactly 0% of the company, and she should probably find employment somewhere else.

sswishbone - NTA - 1) your company that you founded 2) nowhere had she talked about actually being a true shareholder with her money into the company. She's trying the old 'we're family' perspective, when You're not, you're co-workers

Tricky-Flamingo-7491 - NTA Your sister is an entitled, manipulative a**hole. DO NOT go through with part ownership, I can guarantee you this will not end well. Don't let her use that toxic

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'but faaamily' mentality to trick you into giving away half the business you created and worked hard for. 5-8 hours of work a week, for which she was paid a generous salary, and she thinks she built your business and should be gifted half of it?! This is absolute insanity!!!

Aggressive_Week9068 - YWBTA if you caved in to your sister's demands. How did she go from doing a little work for 5-8 hours a week to thinking she was entitled to 50% of your business?

At the very best she could get contract if she wishes to continue working for your business.. NTA, OP. She thinks that just because she's your sister she's entitled to a part of what you own.

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aldog90 - She isn't being professional in these negotiations. Are you sure that you would even like to own a company with her?. Edit: NTA

the_amberdrake - NTA. She pulled 5-8 hours a week and was paid hourly.

sometimesnotright - NTA. She was paid, and not unreasonably so. But _WHY THE F*CK_ did you even entertain the idea of giving her a part of the business for nothing to start with?

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That's on you, you poisoned the well by not making sure that any such questions weren't met by immediate response question of what her contribution will be. Pretty sure you could hire plenty for $25/h for a few hours a week.

bumblebee7310 - NTA. Sis wants a free pass in life. Working 5-8hrs per WEEK and claiming she build the business. Little delusional there are we.

LunaticBZ - NTA, Honestly I'd email the documentation you made to any family members giving you grief.. You should never be below 51% owner unless someone is flat out buying you out.

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Depending on what you company is worth giving away some percentage because family, and because keeping the peace might make some sense. But even then your company would have to be worth very little to even consider that.

This heated clash over a small business reveals the delicate line between family ties and professional fairness. The founder’s refusal to hand over half her company was a stand for her hard work, but it cost her a sister’s goodwill. How would you navigate a family member’s bold claim on your life’s work? Share your thoughts below and let’s dive into the messy mix of family, business, and boundaries.

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