The best way to go--by far-- is to use a Grunt Fund. A Grunt Fund is a dynamic equity split model designed to provide a perfectly fair equity split for founders of bootstrapped companies. It will tell you exactly how much you and your partner and later partners and employees deserve. It's based on the relative contributions you have each made and changes over time as new contributions are made to make sure that at any given time you and your partners always have what they deserve to have- no more and no less.

The basic model is this: All contributions of time, money, ideas, relationships, supplies, equipment or anything else, can be converted into a fictional unit I call "slices". A slice is calculated based on the fair market value of the contribution and a risk multiplier.

To determine shares you simply apply this calculation:

Individual share = individual slices ÷ total slices

There is also a recovery framework that outlines what happens to shares when someone leaves the company.

I call this a "Fair & Square" split. Fair, in that it always tells you exactly the right split. And, square, because it accounts for all contributions.

I wrote a book on this model that provides detailed implementation instructions. There is also an online calculator tool on my web site. If you contact me through SlicingPie.com, I'll send you a copy of the book!

You're going to love it.