Client giving equity, should myself or my company own it?

[Nixon Williams]

Are you saying it isn't a good idea to hold them in the company then Alan? Or just pointing out the complexities of it? Bearing in mind this share is in recognition for work done surely holding them in the company is the only way of doing this? If they were gifted or bought then I could understand keeping them personally but they aren't. Doesn't that make all the difference here?

On the face of it, holding the shares through the company is probably the best route. However without the full facts it is not easy to give a certain answer.

I would advise caution before entering into payment arrangements of this type. They are common with start ups and so you are taking a risk that the business model will work.

Decide whether you are contracting for the money, in which case I would insist on payment in cash, if you are contracting as an entrepreneur, realise what you are getting into and that you may never see any cash.

In the examples I have seen with clients, no-one has yet seen any return and most have had to write off their 'investment'.

Alan

[BlasterBates]

In the examples I have seen with clients, no-one has yet seen any return and most have had to write off their 'investment'.

I seem to remember from my business studies that something in the region of 90% of all startups fail.