[davismwfl]

Just stop now. He is not an employee if you aren't paying him. Equity is not compensation. What you are asking him to be is essentially a 3rd co-founder.

there is nothing wrong with bringing someone aboard like this but call them what they are and make the equity worth their risk.

And technically you can sign a contract with him as long as there are mutual benefits. But you are on a bad footing IMO if you try to pay him next to nothing.

If you truly need this person that bad and you can't afford him then you should just accept it for what it is, you need another co-founder.