

About to incorporate, my father wants in. - hibou

To begin, I&#x27;m about to incorporate my business. Shit hit the fan in a good way. &lt;p&gt;My father, who owns his own company is very supportive of my whole endeavor. His company pays me a salary because I&#x27;m actually a director, even though I do absolutely nothing.  I&#x27;ve used that cash to support myself and further my business.&lt;p&gt;My dad is starting to express his belief that he&#x27;s the one personally funding me, even though I&#x27;m using my legally-earned salary money.He says he can pull the switch whenever he wants and cut off my salary. (all praise his mighty patriarch)&lt;p&gt;2) I told him at one point last week I was about to make a call to get the incoporation going.I just needed to call my lawyer and say &quot;go&quot;. At that moment, he told me that maybe he should be a director of my company because he foresees putting in money in the future that he could potentially reinvest if things work out.(Wait, what) I asked him if that&#x27;s what directors are for and he pleaded ignorance. I went to my office later. He shows up out of nowhere and then tells me that since I own 13% of his company, and that he sees no reason why he shouldn&#x27;t be able to benefit from my probable success. (Because hey, I ASKED HIM to make me a director of his company and to give me shares, right? No. Never asked for a cent or any position in his firm)&lt;p&gt;Anyway, so I look at him and say &quot;well shit, so now it&#x27;s about reciprocating your generosity&quot;? . He stormed out and told me he didn&#x27;t know how to deal with my idiocy.&lt;p&gt;Apparently, I offended him . He then comes back and says, &quot;you know what?! You&#x27;re right, you own 150% of your company. Enjoy&quot;.&lt;p&gt;I mean, don&#x27;t I? &lt;p&gt;&lt;p&gt;I just can&#x27;t figure out why my dad, who has nothing to do with software and doesn&#x27;t even fully grasp what I&#x27;m doing, wants to be a fucking director of my corporation.&lt;p&gt;Do I owe him something?
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lnsignificant
Tough situation, and you never mix money and family, but I would give him a
piece. Not because he thinks he deserves it, but because it's a nice gesture
and he's probably right that he will probably be investing into it. I don't
envy the decision you have to make, but if your relationship with him before
this was great, I would personally let him in.

good luck

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lnsignificant
You could always grant him a piece, say 5%, with incentives that can be
granted over time while certain company KPI's are met (you both could co-write
these), pushing up closer to 10% in the event of some sort of fund raising he
would be a part of. This covers a lot of your risk, and sets the stage for a
solid working relationship. You need to manage both in this instance, which
makes the relationship more complex, but could end up with you having your
cake and eating it too.

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hibou
Can this all be done at some later point in time?

edit: I just feel like there's a deeper, darker, emotional issue that needs to
be addressed. My dad feels like it's my duty to include him because I've been
spoiled all my life. I just see this as unfair. Also, I kind of want to do
something on my own for once without having my father hovering above me.

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lnsignificant
If he agrees to it. Just out of curiosity, why do you care if he's doing this
for less than altruistic reasons?

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NonEUCitizen
You'll have trouble getting outside investors later if you mix it up with the
other company.

