Startup and market research

[thisxyz]

What is the name of your state (only U.S. law)? NC

Startup and market research
I do not really know anything about running business and dealing with startups. I have been doing a market research for a startup company and they told me I will be paid based on equity. I was wondering if anybody lets me know how that works, also what should I do to make sure I get paid once I completed my work.

 

[tranquility]

Best way is to have a written contract. You know by "equity" they're talking about ownership, right? There is no pot of money at the end of the rainbow.

 

[LdiJ]

What is the name of your state (only U.S. law)? NC

Startup and market research
I do not really know anything about running business and dealing with startups. I have been doing a market research for a startup company and they told me I will be paid based on equity. I was wondering if anybody lets me know how that works, also what should I do to make sure I get paid once I completed my work.

Just to expand on what Tranq said...

They aren't going to pay you any money. They are going to give you a share (probably a very small one) in the company. If the company makes a profit (which will not be likely to happen quickly) you will make money. If the company does not make a profit, you will not make any money. If you think that the business plan is solid enough and you are willing to wait as much as a year or two to get any money out of it, then continue on with what you are doing. If you need money now, stop working for them and find other employment.

 

[thisxyz]

Thank you for the reply. Is there any template anywhere I can download to use as a contract for startup ventures?

 

[thisxyz]

Just to expand on what Tranq said...

They aren't going to pay you any money. They are going to give you a share (probably a very small one) in the company. If the company makes a profit (which will not be likely to happen quickly) you will make money. If the company does not make a profit, you will not make any money. If you think that the business plan is solid enough and you are willing to wait as much as a year or two to get any money out of it, then continue on with what you are doing. If you need money now, stop working for them and find other employment.

Thanks for the reply. They mentioned they could not pay me money at this point, should I be asking them to put my name as co-founder on the state registration at least to secure my ownership?

 

[LdiJ]

Thanks for the reply. They mentioned they could not pay me money at this point, should I be asking them to put my name as co-founder on the state registration at least to secure my ownership?

That is not nearly as important as a solid, well written, contract.