[adrianscott]

if one founder is going full-time and the other isn't, then it would seem like someone going full-time should get better equity.

you should have a written legal agreement covering the process of equity distribution and vesting, which includes a mechanism for when there is a change in commitment levels by one co-founder versus another, including if one of the two were to leave at some point. in other words, get your pre-nup done ;). (not to mention assignment of intellectual property etc -- speak to a lawyer)

a cash investment would normally receive additional equity and with a senior position (i.e. if company is sold for $25K, the $20K investor gets their money back first before the remaining $5K is distributed), though w/ $20K you probably can't afford legal paperwork for pay for that.

-a

[cofounder1234]

Yea - sounds like we have to formalize our partnership a bit more (we've only got the LLC set up). Thanks.

[adrianscott]

llc? you may want to do a bit of research on company formation choices, depending on what direction you want to go in. if you want to raise funding and do things silicon valley style, an llc would be uncommon, imho.