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How to structure without knowing founders' potential value?

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_davis_smith

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Hey everyone,

So I thought I'd reach out to anyone in here that knows more about structuring businesses more than I do.

We're a group of 4 young guys (20-25 years old), and we're all working to create an interactive educational platform for blockchain development.

Since we're going to be starting out primarily as a content/educational site, we don't really have any assets to protect, so we won't really be liable for much.

Right now, the CEO and I are unsure how much each member will end up contributing in the long run. One member is a developer that can be replaced easily, in my opinion. The other has a great network in our field, and some valuable knowledge regarding the industry - but not many skills of great value once we begin pushing towards higher quality work.

How do we go about structuring the business in a way that doesn't leave anyone feeling like they aren't valued, yet protect ourselves from wasting equity and resources on a member that is eventually not worth their weight?

We're thinking we're going to structure as an LLC with each person receiving percentage in equity, and then restructure to a C corp if we get funding from any investors.

Should we succeed in getting that far, are there any vesting schedules or options that can help us prepare down the road?

We just want to protect everyone's best interests, including the other members if either the CEO or I ever decided to leave the project early.

Any advice or direction would be greatly appreciated. Thanks!
 
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Access Restricted: Unlock 1,000,000+ Posts

Stop Peeking Through the Keyhole.
Open the Door.

You hit a wall because the best advice isn't free—it's earned. Since 2007, MJ DeMarco has been active here daily (99.9% active rate), building a war room for entrepreneurs who refuse to settle for mediocrity.

  • Active Daily: Life-changing content posted dozens of times every day. No dead threads.
  • MJ's Inner Circle: Direct access to the author of The Millionaire Fastlane.
  • Vetted Network: Connect with founders scaling to 7 and 8 figures.
  • Proven Roadmaps: Strategy over motivation. Execution over "hustle porn."
"SCALED TO 6-FIGURE MONTHS"
"Tips and advice here saved me from huge mistakes, others allowed me to scale my business to 6-figure months."
— User MitchC
"INSANE QUALITY OF PEOPLE"
"The number of high quality people I've met from this forum has been insane. All of it predicated on building real value."
— User Richard Peck

"You are the average of the five people you surround yourself with."
Are you surrounding yourself with success?

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