My husband was brought on as a 4th partner of a startup last year. Unfortunately, he did not take the LLC legal docs to a lawyer to make sure the % he was being offered was fair before signing.
He currently has 8%, however I don't feel this is fair. He has not quit his day job, but has put in countless night and weekend hours for the past year into creating this application. He has put forth his own money to buy necessary hardware/software. He will be the sole person responsible for maintaining/improving the application after it is released.
No one is drawing a salary from the company at this point since there haven't been any sales yet, although the application is near completion and they anticipate selling soon. Everyone is still working their daytime jobs. One partner brought the idea, the second partner handles all legal aspects, including drafting the articles of incorporation, the third handles sales and has already found potential clients.
My questions are:
- Is 8% reasonable?
- If not, what would be more reasonable.
- At this point, can he do anything to change his percentage?
He plans on talking with the other three about this. But I'm afraid since he's already signed on to the 8%, all he can do is just hope they don't laugh in his face.
The business is currently split 36/36/20/8.
The code is available to all the partners, so he has no leverage I can think of.