Equity Allocation & Vesting
01.Dividing Ownership
Dividing equity among co-founders should reflect their contributions, roles, and long-term commitment. Avoid simple 50/50 splits without a vesting schedule.
02.Vesting Schedules
A standard vesting schedule (e.g., 4-year vesting with a 1-year cliff) ensures that founders earn their equity over time. If a founder leaves early, they forfeit unvested shares.
03.C-Corp Share Structure
Ensure your corporate charter authorizes enough shares (typically 10,000,000 shares for a Delaware C-Corp) to allow room for employees and future investors.