Ask: When do I need to think about equity among friends

2 pointsincase2 comments

My friend and I have been working on this idea, no code has hit the terminal but its about to. At what point should we have the talk about forming a company or equity split up. In other words, when do we make it official.

Also, any tips on how to start that conversation?

Thanks

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Honestly, I'd talk about it now. It can really mess things up later if he thought he was going to have a bigger / smaller part than he was. Just make sure you're on the same page, and then you can "make it official" later.

How to start the conversation: "Lets talk about equity really quick before we start so we are both on the same page. I propose X and Y split. What are your thoughts?"

Ready, fire, aim. Focus on making the idea functional before you waste time splitting equity for a theoretical business. After you get something tangible, it will be clear who has the most passion and energy for this - at which point you can start formulating an equity agreement. In a way that is organic, as opposed to arbitrary.

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