[bjones53]

Based your the description you've provided you shouldn't split anything, but I'd need more information to answer your question.

Has your co-founder brought in any sales? Does he have any industry expertise? A strong network of customers/advisors/investors? Is he leaving a high paying job? If the answer to all of the above is no, then it's hard to justify giving him much...

It sounds like you've done all the heavy lifting, but understand there's a lot more to come; ask yourself whether you want to do this on your own; ask yourself whether you want to do this with anyone else.

No one wants to leave their job for anything less than 10% (with no salary). Also, if he's 'your guy,' make sure he feels like a co-founder; someone who can share the pain.

Finally, make sure you sign an agreement wherein the shareholders earn equity after a specific date (this is called a cliff, it typically occurs after 12 months), and that equity vests over a specific period (typically 48 months). You can find a lot of information on shareholder agreements online, but at some point you'll want to see a lawyer.

[curiousjorge]

    Has your co-founder brought in any sales? 

No, but we plan on going to sales meet together.

    Does he have any industry expertise? 

No, I had to explain the industry in it's entirety.

    A strong network of customers/advisors/investors? 

No but knows other sales people.

    Is he leaving a high paying job? 

I think it's high paying, but not 100% sure what he's salary is.

The thing is he does feel like a co-founder, he got everything I explained very quickly, we think similarly and dig the vibe. Now he wants to code and help out on the dev side (as he's done it on the side on and off), which I welcome.

Do you mean after a year, both of us start earning equities? What does it mean to vests? I will consider a lawyer.

[bjones53]

Chris Dixon does a great job at explaining vesting schedules for founders and employees http://cdixon.org/2009/04/21/founder-vesting/.

If he feels like a co-founder then you should be able to have a conversation with him about equity; if things go poorly then the partnership was never meant to be. Use this as an opportunity to discuss commitments and expectations; will he quit his job? how about cover costs?

Some people suggest that equity should be awarded based on set milestones, but I think this strategy makes people feel more like employees than co-founders.