I am doing work for a start up company. The owner has told me that he will give me quot;3 percentquot; of the comp? -

I am doing work for a start up company. The owner has told me that he will give me 3 percent of the company in stock when papers are drawn up in several months. In the meantime, what should I ask for in writing to protect myself? Is 3% of the company in stock enough? What terms are there that should be addressed?

I ve heard this one a million times. This is a bad idea. Most likely you ll never make a dime. Apart from that 3% is irrelevant unless he sells the company, 3% doesn t mean you get a paycheck. If you re doing work for a startup or any company other than your own, ask for money not stock. If you agree to defer payment for a month or so, you should get paid and get the stock as well for taking the risk and doing a good deed, otherwise you re getting ripped off.If you re serious about it, you need to get a letter of intent.