should I be getting a response today?
I did reply on Wednesday around 2:15 PT?
We will both have an equity stake. There is only one owner of the business. I am not sure if her children are stake holders. its womens clothing retail store and we are discussing launching a shoe line with the goal of opening a stand alone shoe store.
Amy,I am sorry for the delay, I just finally received this response form you. Please allow me reply below.It does not appear as if you would be having a management stake. This potentially appears to be a situation where an agreement setting forth condition for employment and ownership would be sufficient. If you are investing funds, then you could do either as a 'limited' shareholder or as a 'general' shareholder--the difference is that a limited investor has no management stake, it is essentially a silent partner situation. If you aren't management, this would likely be the focus of your terms--in that case make sure to discuss conditions of repayment of investment if any, percentage of ownership how profits would be calculated and paid out, and what your wage would be. If you are also bringing in your own 'sweat equity', you would need to figure out intellectual property concerns--what would belong to you, what to the company, and in case of dissolution or your termination, what rights you can remove and take back with you. This is most important because while investments are positive, what you really need to focus on are the conditions of emoval should something go wrong. You may also demand a set period of time during which you cannot be terminated or if terminated, a significant financial penalty is imposed on the employer, such as remainder of your guaranteed salary, legal fees, court costs, and other expenses.Good luck.
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