Do you plan on an LLC, an S-Corp or a C-Corp? An LLC would require to define terms of ownership, decission and cashout in its charter beforehand. A Corp is muc

Do you plan on an LLC, an S-Corp or a C-Corp? An LLC would require to define terms of ownership, decission and cashout in its charter beforehand. A Corp is much more flexible, especially if you do not know how much your "partner" will contribute in the future. So you might want to copy the unusual way Wizards of the Coast did: 1 share = 1 hour = $50 So you own already 600 shares, and your partner owns zero. If he invests money or time he earns share and dilutes you, if you invest money or time you earn shares and dilute him. WotC shares later sold to $1400, iirc - so it was a good deal for the artists who painted those tiny pictures for magic the gathering. PS: Peter Adkison later wrote that he had no clue how a normal Corp works, and did not consult a lawyer because he had no money for it, and just handwaved a way, that sounded fair to him, to pay the artists without having any money. It worked out, thats all that counts.