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Harshita

Stealth • 2m

Guys, let's suppose- That 5 teens are working on a service based startup( like a agency,or something like this,etc.) which is not registered or anything! Now, when they come on dividing shares, so should they divide in 5 parts Or in 6 parts ( Diffe

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Wakar

Stealth • 2m

Valuation and equity split are different. For a business with 5 founders, you decide the equity split based on contributions like effort or investment. If the business needs funding (e.g., 1 crore), everyone can contribute based on their equity share. If someone invests more, their equity may increase, and others' shares will adjust accordingly. You can't take money directly from revenue; only profits can be distributed, and even then, either as dividends or by adjusting equity. Equity represents ownership and authority in the business, and its benefits are realized during growth, profits, or when the company is listed or sold.

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