[MissT74]

My ex husband did this several times in the past (he's a DIVINE web builder).

I think you have to make the choice. Do you want a percentage of the company (equity) or do you want to get paid an hourly rate for your work (even though you don't get paid right now)

The reasons:

1. If you ask for equity in the business, are you willing to do all the work and get nothing in return? Are you willing to take that risk?

2. If you work for an hourly rate are you willing to accept that hourly rate if the business goes through the roof and you no longer have access to equity but merely the agreed upon hourly rate?

As you can see, it's almost a Catch-22. Most businesses that my husband worked on was a simple hourly rate and very easy to say that, however, there was one company that he really, REALLY wanted equity in. He ended up just getting an hourly rate and 3 years after he built the site it was sold for 2.75 million bucks. (This site was very, very well known and in fact, was even discussed on 2+2 at one point. [img]/images/graemlins/smile.gif[/img] ) So, needless to say, we were upset/pissed that we didn't get our little 5% equity. Sigh.

Choose wisely, but also know that without you, they can't start the business. Sure, he can get someone else, but the idea was to come to you because you're willing to work for free instead of equity. It's almost a no lose situation for him. If the business thrives, he's OK giving you a piece of the pie, but if it fails you get nothing and you lose all the time/sweat/blood/tears that you put into it.

I think it's based upon what and how you feel about this business. Do you REALLY feel it can make money? If so, go for equity. If you're not sure, then go for hourly rate. This way you don't get screwed.

T