Tricky Ownership Question

[captain_pete]

Hi all,

I currently work as a full-time employee at an agency, but I've been working on a side project for the past 18 months. This project was initiated by a C-level executive at my agency (let's call him Fred), but he spends very little time on the project himself. Since its inception, I have spent 20% of my time at work on the project, plus some weekends because I find it really fun. The company has also hired one other full-time employee (let's call her Jane) to spend 100% of her time on the project. Web developers and designers who work at the agency have occasionally participated with limited enthusiasm.

Jane and I want to turn this project into its own company, and we've agreed to take equal shares. Fred thinks this is a fantastic idea and wants to stay on as an investor. The agency insists that it has already spent $200,000 on employee time to work on the project, but is undecided how it wants to stay involved moving forward.

If Jane and I take equal shares as partners, how much ownership of the company do we deserve to have? How much does Fred deserve for having the idea and staying on as the Head of the Board of Directors? How much does the agency deserve, and how would that change depending on whether or not they decide to make another monetary contribution?

Thanks!

[bchapin]

Depends if the company you worked with had you sign anything when you started working for them. I am not a lawyer, but anything you create/develop/engineer at work could end up belonging to the company you are working for