QUESTION

How Do I structure a fair and equitable business relationship with a foreign national who will only contribute 'work' to an area of the business?

Asked on Mar 22nd, 2013 on Corporate Law - New York
More details to this question:
I incorporated a new S Corp as a training and consulting firm. I had a business plan detailing my business model, which I discussed with someone from another country. I flew this 'someone' from D.R. to help me define the services to be offered and create a preliminary corp identity (logo). I suggested we could work together to develop a program in Spanish. They expect me to sponsor them for a work visa through my startup. They want an `internal' agreement of partnership and expect disbursements from profits. They want to keep 'ownership' of material they create for the company. They want shares from profits of all training they conduct. The value proposition and business model were both my idea. Most, if not all of the clients that we will be serving are a direct result of my connections. Startup costs all came from me. Content we are using was created, purchased or licensed by me. We collaborated on the name for a program that I ended up using as the legal corp name.
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1 ANSWER

Michael Stolzar
One way is to estimate the value of his/her work and have the person earn his/her interest as the work is satisfactorily performed. Otherwise, you could have the person own a forfeitable interest with a work requirement before the interest stops being forfeitable. Perhaps, the main and most important thing you have to determine is how much this person's work is worth. This is not intended to be legal advice, and is general in nature.No attorney-client relationship exists or is formed by this information. Furthermore, this does not represent the views or opinions of LexisNexis or its affiliated companies.
Answered on Mar 22nd, 2013 at 3:25 PM

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