I have experienced a similar constellation.
I am assuming some facts:
Your partner will not have enough money to work for free for one or two years.
You, it seems, will only finance the company, but not actively work for it.
You see yourself as equal partners in this venture, and both want to have a company and earn a lot of money after two years.
Make a business case, how much money will you need until the company is profitable. And how many hours from you and your partner. And make the business case with some buffer money/hours to be on the safe side.
Now set up the partnership like this:
You pay the money, and share the company 50% each. Each of you has to work the agreed amount of money for minmum wages (whatever you agree on is a "minimum wage").
Find some milestones, agree on a reasonable work amount and timeline, and pay bonuses per planned working hours. Yes, money from the company.
And if any partner does not work the agreed amount, or wants to stop working, or doesn't provide the agreed resources, the other partner receives the shares of the quitting partner in relation to the hours/resources not done.
This has the following advantages:
- You are 50% partners from the beginning, all decisions will be
decided by both of you.
- No partner needs to work other jobs to eat/live, taking away working hours from the company.
- The bonuses in cash help raise morale because minimum wages make it tough to live on
for two years.
- And if a partner doesn't stay on board, he looses his shares accordingly to the work, he did not do.
This should be a fair set up.
And in case it doesn't work out, and your estimation was wrong, do the same as above for the next round, starting with the business case. But if the new contributions from both partners are not valued equally, their additional shares should also be divided accordingly.
This worked for a company I know of. The most important point was the business case. The costs need to be real, buffers included, bonuses included, holidays, illness, whatever.
And the income should not be wishful thinking. And use the milestones as approval for the estimated working hours until this milestone from each partner.