Seems like you have a good relationship, and likely a good starting offer. A couple thoughts about the equity: 1. You say you'll be taking a salary. That means

Seems like you have a good relationship, and likely a good starting offer. A couple thoughts about the equity: 1. You say you'll be taking a salary. That means, I assume, the other guy is capitalizing the company? 2. Figure out how much he's investing into the company. If he's paying monthly expenses out of pocket, figure out how deep into the hole he's willing to go. Ask him what happens when you guys hit that number. 3. It would be much better for him to commit to investing $x amount into the company up front. He should then invest that money at Y agreed upon valuation. You should split the equity 50/50 first, and then he would get whatever equity he invests for. Lastly, be very clear about the vision of the company, how it will make money, if other investors will be brought in, etc. It's all very new to you now, but in 18 months when you've invested everything in it, you'll want a solid foundation of communicated expectations. Get everything in writing. And good luck.