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An Innovative Approach to Splitting Equity

An Innovative Approach to Splitting Equity

By Nina Kaufman, Esq.

When two people start a business together, it’s tempting to say, simply, that they should be 50/50 partners.  But, as Seth Godin points out in a recent post, what’s fair today may not be fair 12 or 18 months from now. Godin offered the following suggestion (in response to a specific example): “Today, right now, your contribution is worth 5% of the company and my creation of the company is worth 5%. The other 90% is based on what each of us does over the next 18 months. Here’s a list of what has to get done, and what we agree it’s worth…” And then make a list. Stuff like commenting and updating and supporting the code. Stuff like closing sales and hiring people and raising money… The only curlicue, then, becomes how to phrase that in your partnership agreement, as they tend to be drafted from a “moment-in-time” perspective.  Will the shifting sands of fair ownership (this year, you’re 50/50; next year, you’re 75/25) have tax consequences?  If you agree in the document to…

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Nina Kaufman

Flying solo doesn’t have to mean going it alone.

I’m Nina Kaufman.

I know first-hand that running a knowledge-based service business has unique challenges. It’s so much easier when you have an advocate in your corner. Over the past 25 years, I’ve worked with thousands of New York business professionals who want a legal advisor to guide and support them as they navigate the business world.

With wide-ranging experience as a business attorney, strategist, and media authority, I bring the added power of a business lens to the legal issues my clients are facing.

And because I’ve been a business owner myself, I’ve lived through the soaring highs and devastating lows – like when my first law firm failed. So I understand what’s involved to serve great clients, detect business risks early and build a true legacy.

I can’t get those 12 years back. That’s why I have made it my mission to ensure that business professionals like you can become wise and discerning leaders, build a solid business, and live your best life.