Shares Distribution? How to? Valuation?

andersonfiretools

Hey guys,

I need to figure out how to distribute shares to my team of people working with me on my startup. I'm not sure how to valuate my new company or what percentages to give everyone or how to figure out how many shares each percentage provides. I don't want to screw this up.

Current Situation:
1. Company LLC has been formed and is moving forward at a rapid rate
2. Patents have been drawn up and are ready for filing
3. Received $7500 in investment to fund some misc items
4. I've dumped in about $15,000 of my own money so far for patents
5. I have brought on a mechanical engineer, 3D modeler, and electronics engineer to help and have offered to give them shares for trade of work duties.
6. We have three tools we are developing and all three have HUGE potential in the fire service industry as well as civilain industries.
7. I have developed a huge following and have gained alot of steam so far with branding so I know we will have a winner as soon as R&D is completed and we have a product to release for proof of concept..

I want to make sure I get shares to my team soon so they don't just get tired of no return on their time but I don't know who to talk to about this or how to go about it the right way.

Need help with this!

Thank you!
Joey

saravanan

The best way to divide up equity is to use the Slicing Pie model. Unlike traditional, old-fashion splits that are based largely on the team’s predictions of the future, Slicing Pie bases the split on each founder’s actual contributions.

Em.reed

A really useful tool for making share-related legal documents is Smackdocs.com. It's simple and quick and a really helpful resource for making legal documents. 
Here is a link for Equity Incentive Documents that look like they might be helpful for you. Good luck!
https://www.smackdocs.com/downloads/equity-incentive-documents-package/