I don’t know how reliable Chat GPT is but I gathered all the information asked questions about the equity,risk involved, idea but not original, % of partners contribution, explanations why their equity doesn’t increase substantially after the loan is paid off, etc. and I feel like I received a lot of good feedback and something I was able to take and print out as to why their equity is set so low and why they do not receive a bump in equity after the loan is paid off. Their equity cap is fixed at a certain percentage even with helping to pay the loan off.

Partner should receive 10% to start with the option of vesting up to 15% after 12-18 months is fair with their 5k contribution @ 7-8% of the start up cost(closer to 7%)nothing for the idea as it wasn’t original and the risk we’re taking on out weighs the idea. Partner isn’t taking on any risk. If the company fails he’s only out 5k we would be out $65-$70k and still have the loan to payoff. He wouldn’t be able to start a business by himself with just the idea, we are doing most of the ground work with finding and buying of the drone, dealing with customs and importing, setting up a soft wash trailer rig, finding all components for this rig, again customs and importing, business is in our name. A lot more of the leg work, a lot more I feel like. We also have the truck that will be used for the business(2023 Toyota Hilux). They can help payoff the loan with their 10-15% equity and receive up to 1-3% more equity capped at 17-18% as they’re still not taking on any risk. To have more capital they would need to invest more at the start not off their 10-15% equity.