Questions

I had a not so positive experience where my potential co-founder wanted a similar amount of equity, but didn't care that much about control. We ended up going separate ways due to major differences of opinion and I am sure that if we had continued down the same path he would have used his share to block any important decisions, whereas if the deal was only about percentage and not votes from the start, my position would be much more protected. I have been working and investing on my startup for the past 2,5 years, and would hate to see my company destroyed due to founder fighting. Thanks!!!

Simple answer:

For now, use an LLC. That way rather than having control be about majority/minority shares, etc. You can spell everything out in the Operating Agreement.

Obviously, when you take on capital you'll most likely transfer assets to "Newcorp," which should generally be an Scorp, but it does away with the obstacles you're facing.

I've done this multiple times successfully.


Answered 6 years ago

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