The equity question really only matters if you are 50/50 and it would be an issue of control. You're already a minority holder. Is there a big difference betwee

The equity question really only matters if you are 50/50 and it would be an issue of control. You're already a minority holder. Is there a big difference between 40% and 39.5% ownership? You should have a talk with your cofounder about at what point it makes sense for both of you to draw something. Trading equity for cash isn't a bad idea in the sense it forces you to come up with a valuation for the business. But it also forces your partner to carry more risk and encourages you to approach the business as an ATM instead of an investment. It may be fairer to split what you would consider a "survival salary" two ways. If you have revenue and growth, these problems will seem quaint in a couple of months or a year.