The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success

How to structure without knowing founders' potential value?

Remove ads while supporting the Unscripted philosophy...become an INSIDER.

_davis_smith

New Contributor
May 4, 2018
8
8
13
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!
 

Don't like ads? Remove them while supporting the forum. Subscribe.

Create an account or login to comment

You must be a member in order to leave a comment

Create account

Create an account on our community. It's easy!

Log in

Already have an account? Log in here.

Sponsored Offers

  • Sticky
MARKETPLACE Lex DeVille's - Advanced Freelance Udemy Courses!
Just bought 5 of your Upwork courses. Thanks for making valuable content Lex!
  • Sticky
MARKETPLACE Kill Bigger Incubator
I've just concluded my program with Kyle. The incubator gave me what I wanted. Now, working on a...
  • Sticky
MARKETPLACE Fox's Web Design Guide: Earn $100K this year (Yes, 2020!) and Go Fastlane
Thanks for the detailed response. I see it similar, in the beginning, you have only a small...
  • Sticky
MARKETPLACE Grow Your Business With a Book (An Unorthodox Marketing Strategy That Built One of the Largest...
Thanks for your offer to look at my book. Here's the link to the squeeze page Buy The Prosperous...
  • Sticky
MARKETPLACE You Are One Call Away From Living Your Dream Life - LightHouse’s Accountability Program ⚡
The day I can afford to pay 800 a month to have someone keep me accountable is the day I've won...



Forum Sponsor

sponsor

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Monthly conference calls with doers
Ideas needing execution, more!

Join Fastlane Insiders.

Top Bottom