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So I recently met a gentleman a few weeks back -- he was looking for a partner for a biz plan idea that he had. So anyway, we have met and had a couple of initial discussions. He's a high level guy who's had this idea and he's looking for someone to take the idea and run with it. He'd play more of a consultant role - as he doesn't want to get tied up in day-to-day. So that's where I come into play. So over the last few weeks, I have created a basic business plan that outlines a very basic /barebones test to see if it could work. Idea is to create proof of concept -- and see if we can get traction. If it works, we continue - if not, we re-work the plan.
Anyway - my question is this -- before I get too far along with this, I wanted to created some structure to this partnership. The idea I would like to see is if I can get him to provide the initial start-up capital ($5K). Assume he provides start-up capital (and the initial idea), but I provide a significant amount of the work involved in taking the idea into a real business. How would you set-up the equity side of the business? Would it be fair for me to take a greater share (60/40, 70/30,80/20) since I'm providing the bulk of the initial work? Would it be necessary to create a true corporate structure - partnership or is it still too early? He keeps wanting to bring in other people -- but I feel it's unnecessary at this time. What would you include in a partnership agreement?
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