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You are overthinking this. The post describes loans from family members for about $100 each. I'll support what Patrick said: just make them simple loans, probab

You are overthinking this. The post describes loans from family members for about $100 each. I'll support what Patrick said: just make them simple loans, probably not even with interest. The only other approach I can think of, if the amounts get slightly bigger and the owner really wants to give the family a "share" of the action in case this really takes off, is to issue convertible notes. They are very easy to do in volume. They are effectively loans, but with a conversion clause into equity that can be applied if the company actually takes off.

dctoedt 12y ago
> You are overthinking this. The post describes loans from family members for about $100 each. What he (?) says now is that it's just family members. If it works --- or if he needs more capital than he can raise from just family --- he's likely to want to expand its use. That can lead to major legal trouble. Moreover, others might read his idea and want to do something similar.