I'm intrigued that you wrote that you have a business plan which is an investment document. If an MBA prepared the business plan, they should have discussed and outlined how you should proceed. If you are using the term 'business plan' to refer to the strategic plan for your business, your questions make sense. An equity agreement is binding and should be entered into with an experienced business or securities attorney. Equity is nothing more than a concept if your company is unregistered. Any bona fide investor would be unwise to give money to an informal entity. Your guesstimates of what level of return should be paid and the way you wish to approach this investment indicate you are in need of legal leadership.