Founding team here.I came up with an idea a few years ago. Been researching it since. He (Tom) joined 5 months ago as the product lead. I have already made multiple older renditions of the product, but nothing as refined. He did some good work over the past 5 months but still hasn’t completed a working prototype. Mostly because we were still iterating and discovering our fit. We have settled on something lean and are working out cofounder agreements.He wants 35% and me 65% with the following deal: We split equity evenly until I hit 51% then all further dilution is from him. I can’t tell if this is the biggest failure or best deal ever. I am so confused. He opted to get his parents involved and was upset that I offered him a flat 20% and wasn’t seeing him as a cofounder (WTF?). He does good work but is slow, so I think this dilution would be good for early stages and because he’s the one who came up with it we shouldn’t have any problems. I still want to retain over 50% ownership going into investor rounds but I’m just not sure of this plan and could use a second look. Also I don’t know how to tell him but I really need him as a product team lead and not a business cofounder (my background). To be fair we are both young and are still figuring things out but the way he handled this seemed quite immature and I worry about our fortune in the long run. We work well together so I don’t want to split. He helps me keep focused which has really helped us narrow down our search as a company.Any advice going into this? I’m incorporating tomorrow. I’m debating between LLC and C-Corp but who knows. I’m worried this guy is gonna find a way to screw me over by making me feel bad for him (pity party) and make me pay up in the long run. He wants to get lawyers involved and his parents are willing to pay which I know is a bad fucking idea.What do you think? PS I’m 21 and very new to all of this. I am very worried. see hubwealthy.com/wealthy
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