On Jun 2, 2007, at 10:37 AM, Mark Waser wrote:
If the corporation does have an influx of cash (due to an intermediate success), a consensus of active contributors would have to decide how much to share out and how much to retain as seed money (and I would push real hard for the majority, if not all, of it to be retained as seed money -- unless it were the result of a single or small number of contributors who needed to be rewarded with a substantial chunk). If the corporation has an influx of cash due to an investor or benefactor, it would all be kept as seed money to hire individuals (whose contributions would be recognized at a reduced rate due to their paid status).
It is worth pointing out that compensation, equity issues, and oversight are highly regulated. About half of the organizational and compensation ideas I've seen proposed would require an army of lawyers to arrange, have serious consequences that have apparently been overlooked, or would simply be illegal under current law. There a complex tax issues that have to be understood as well.
Things used to be more flexible, but they've been tightening the screws on creative organization for years in order to "do something" about perceived business malfeasance. The result is that there are complex rules and hoops you have to jump through that get worse every year, some highly restrictive, if you want to legally organize and operate a venture.
Cheers, J. Andrew Rogers ----- This list is sponsored by AGIRI: http://www.agiri.org/email To unsubscribe or change your options, please go to: http://v2.listbox.com/member/?member_id=231415&user_secret=e9e40a7e
