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Don't Let Sweat Equity Create 'Phantom Income' (entrepreneur.com)
2 points by ibejoeb on March 1, 2011 | hide | past | favorite | 1 comment



This is a crazy interesting article. Just for starters i think Option #3 is the best. Taking a "loan" from the company is the most simple, least complicated approach.

What i think is even more interesting is the idea of " what percentage of the company is "sweat equity" worth?" - I recently was working with someone to start up a company. I was not going to be able to put in as much sweat equity as she was right away and we ultimately could not agree on legal terms we both felt comfortable with.

Any one have any experience in this?




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