Ask HN: How to split equity

Is there any immediately compelling reason why 1/3rd each isn't fair?

Of course, this is based on my entirely limited knowledge of the rest of the situation. There are many other relevant questions to ask. Take a look at some previous threads on this same topic: http://searchyc.com/equity

I will say, try to get equity taken care of up front, before you bring people on. It will prevent conflicts of a magnitude you would never expect.

1/3 each does NOT seem fair.

To be honest, I don't understand why you are getting person B involved at all, give them equity and treat them as a co-founder if they don't have much work to do right now (as you seem to suggest). From your description, quite honestly, it seems like you might as well have hired an intern or gotten an accountant instead of giving this person a large part of your company. "Knowing a lot about funding" is NOT a reason to make someone a cofounder.

That's my 0.02c, sorry if that sounds harsh. I just don't want another post in 12 months about how to split up with my cofounders who aren't pulling their weight.

Person C is coming in later, so should get significantly less equity.

From what I'm hearing, I would not have personB involved with the expectation that at some point in the future they'll start pulling their weight. If that is the thinking, then wait until you really, really need them, and then get them involved (for a lot less equity). Person C sounds important, so make them your second cofounder.

Not knowing about the details, from all your comments it sounds like personB is not doing much. YOU found another cofounder. YOU are telling personB what to do. YOU also expect personB to start pulling their weight in the future. All this points to letting them go NOW, and asking him back later when there's a need for his expertise. One more thing: having a business co-founder who isn't doing much right now but "knows a lot about funding" may well hurt your chances to get funding instead of improving them.

Get things right at the beginning. Don't get a business co-founder just because you think you need one.

Of course, I may be wrong and there may be a lot of work for personB right now that I'm not aware of :)

If you don't know how much these people are worth, it is probably because they aren't doing work that is of any tangible value to the company yet. Sure... they'll be invaluable to the company in the future. Everyone is. But do yourself a favor and get them to articulate exactly what it is that they will do and tie a value to THOSE milestones. Then link their vesting to hitting those clearly-defined milestones. And make sure those milestones push the business forward and don't include random stuff like "define equity split".