[ColinWright]

None of this makes sense?

  > He is not taking any pay cut ...

Pay cut from what?

  > I'll be taking 50% of my original salary.

What original salary?

  > I am the business guy ...

This really does not bode well. What will you do? What do you know? What experience do you have? How will you be spending your time? How much time will you be putting in? How much time will the technical guy be putting in? What other activities do either of you have? Why do you call this a "start up" and not just a "small business"?

Does your "technical guy" know you're posting this? Why would you consider having an employee when you have no income?

[meteor]

We are working in an enterprise now. We both are in same team. The pay cut is from the actual salary which we are drawing in the current company.

I have 10 years of experience and the other guy have 6 years of experience. I ll be handling product design, marketing, sales and investor relations. We both are going to work full time on this.

We are yet to discuss about equity. I want to make sure that I handle it in a fair way.

[brudgers]

If what you see as fair involves more equity for you, then at best your position might be seen as biased. If your goal is to be wealthier than your cofounder should things go well, then perhaps.you're optimizing on the wrong thing. Unequal equity is unlikely to increase the odds of success.