Equity Questions

Equity is ownership that both the business owner and investors have in a company.

3 Votes
2 Answers
2.16K Views
What are reasonable precautions to protect my equity?

I'm taking part in a startup where I'll be developing and maintaining the web site and my two other partners are handling the business aspects. I was brought into the startup at a later point, so...

asked Dec 5 '11 at 04:18
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Brian Robinson
16 points

1 Votes
1 Answers
2.82K Views
how much ownership or equity percentage should be given to co-founder?

For a cofounder who has separate full-time job, has no other investment to my startup except some time or effort on few projects/items that are needed. W/o no salary, how much of the...

asked Dec 8 '11 at 10:25
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Tom
197 points

0 Votes
1 Answers
2.28K Views
Best Structure for Investor Buyout

The company I'm an investor in requires a significant capital infusion, and is trying to find a structure to remove several current investors who are not participating in daily operations of...

asked Nov 24 '11 at 08:56
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Andy
111 points

4 Votes
2 Answers
5.55K Views
Allocating equity - equal cash investment - unequal time investment

I am getting involved in a small start up - we have been discussing (3 partners) this for a few months and now is time to get everything settled. We originally discussed a certain time allocation...

asked Nov 24 '11 at 20:53
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Goldenone
21 points

2 Votes
2 Answers
2.33K Views
What is the compensation for time/technical expertise other than equity in a start-up?

I am an Audiologist and have started a couple of clinics with a friend. He already owns a full-time clinic and now we have started two visiting sites of that permanent site. I have left my job and...

asked Nov 29 '11 at 02:08
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Ash Sahni
11 points

1 Votes
1 Answers
4.7K Views
How much equity should I give these people?

We're two co founders, I'm the tech, he is the business end. We want to bring on a graphic designer (since the stuff we've gotten 2/3 times on Guru.com was awful). We currently have begun raising...

asked Nov 29 '11 at 08:28
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Meow
137 points

3 Votes
5 Answers
2.77K Views
What is the best way to adjust options?

Me and my partner are about to start a new startup. I'm much more financially prepared than he is so we've agreed on the following structure. I would fund the company with half a million for the...

asked Nov 30 '11 at 10:49
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Erotsppa
139 points

2 Votes
1 Answers
3.51K Views
Questions around vesting vis-a-vis dilution, leaving a company and being fired from a company

I am just curious about vesting as against 3 things - Dilution, a Co-founder leaving, a co-founder getting fired Please assume a 2-man team with the equity split among the founder & CEO (A)...

asked Nov 15 '11 at 00:23
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Rokstr Dli
36 points

3 Votes
3 Answers
4.32K Views
Minimum wage laws and startups?

As a technical person, you see this a lot: "I've got this great idea to be the next $BIG_SITE. I need you to build a site for me - it should only take 3 months or so. Meanwhile, you can crash on...

asked Nov 15 '11 at 10:12
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Ryan Wilcox
183 points

2 Votes
1 Answers
2.92K Views
Getting Paid in Equity - what is the simplest way to structure payment for consulting work in equity?

I'm opening a small start-up consulting business and would prefer to be paid in equity. It's unusual, I know, but it's my preference. What is the simplest way to structure an equity-pay...

asked Nov 17 '11 at 04:01
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Justin
11 points

0 Votes
1 Answers
2.08K Views
Paying with equity: how much to share?

Yet another equity sharing question, because I couldn't find a similar one that matches my exact scenario. So I have this start-up, and my product is already live, getting great reviews, media...

asked Nov 18 '11 at 09:32
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C Monster
1 point

1 Votes
1 Answers
1.68K Views
How to financially become a part of a start-up company?

I am doing contract work for a start-up company and the founder is thinking of hiring me as an employee (actually as the first employee). I am also willing to work for this start-up company,...

asked Nov 18 '11 at 21:05
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You Never Know
8 points

3 Votes
4 Answers
10.1K Views
How to take a draw in a multi-member LLC?

My business partner and I are forming an LLC. As I understand, members of an LLC are not employees and therefore are not on payroll. Instead they pay themselves by taking a draw from the LLC...

asked Nov 20 '11 at 03:41
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Sheehan Alam
194 points

1 Votes
2 Answers
3.63K Views
How to split up LLC ownership?

My friend and I are planning on forming an LLC around some services we are providing. I am working fulltime on our services and started the initial work 6 months in advance My partner has a...

asked Nov 6 '11 at 11:55
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Sheehan Alam
194 points

2 Votes
3 Answers
4.06K Views
How to split ownership in a startup with a scenario like the one below?

All, This is a case with a friend of mine who is a first-gen entrepreneur and close to cutting a deal with Angels for a funding of $400K. But before I ask you his question, here is the situation,...

asked Nov 13 '11 at 13:46
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Rokstr Dli
36 points

1 Votes
2 Answers
2.11K Views
Income generating firm wants to expand, how to split shares with new comers?

My husband and I own a company which we started 3 years ago. We have two employees currently. In order to grow and expand, we know two of us are not enough to create and build a more profitable...

asked Nov 13 '11 at 16:07
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Linda
6 points

5 Votes
3 Answers
2.95K Views
Can I offer stocks to an employee before being incorporated?

We are a startup but not incorporated yet. We have someone who is interested in working part-time for equity. Is it ok to give him offer letter and offer some stocks which vests over 4 years? Does...

asked Oct 29 '11 at 05:04
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Gagan
150 points

2 Votes
1 Answers
2.66K Views
Giving Equity to an Incubator

A new incubator has shown interest in my startup idea and are asking for 7% equity. As this is the first time someone has asked for equity from me I'm not sure what exactly this entails. Does this...

asked Nov 1 '11 at 07:53
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User744319
94 points

2 Votes
5 Answers
2.81K Views
How to negotiate with a sales guy

I started developing a product in 2001. It was a one off web site for a particular client in which I retained all rights / ownership of the software. By early 2009, the code base had been extended...

asked Oct 18 '11 at 06:21
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Chris Lively
443 points

1 Votes
2 Answers
2.38K Views
Dealing with passive "partner" in directive position

I'm somewhat of in a pinch and I'd appreciate your insight on how to solve things for the best. We've been operating like a company for about 1 year, and I say "like" because we haven't really got...

asked Oct 18 '11 at 12:00
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Anonymous
6 points