Question
I'm 50% owner of a bootstrapped iPhone app.
My partner cannot afford to invest more time and money in further development so I offered him to buy him out for $10K.
He will accept the $10K with the condition that he keeps 5% equity.
Up to now we've split all the development costs and paid from our personal bank accounts.
Our ownership agreement is purely verbal so there is no legal paper work stating who owns what and how much.
I'd like to buy his share using my company name and make everything official with the proper legal documentation.
I just have no idea what I need to do so he can still own 5% of the app.
Please help. Thanks!
Answer
If you're offering him the 5%, you need to legalize it by forming a company and having it put into the documents. Your CPA or lawyers will guide you through the process.
