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What share of my new business should I give to my current employer?

I am starting a business and will soon register it. I have been using various machines, tools and materials of the company I currently work at for product development. I am not an employee, more an unofficial intern; I am not paid and have never signed any work contract or agreement.

Because I have been using valuable machines, I think my “employer” has a potential right to a share of the business, and I want to resolve this issue now.

My questions are:

Answer 11940

Start by consulting an attorney. Even though you never signed a contract or were paid, it is possible your “employer” has some rights to your product/company.

Other than ownership/shares, you could offer a percentage of sales or a royalty payment. (It’s not clear what your product/service offering is)

Once you understand your legal position, you should be honest and transparent. You’ve obviously provided some value by working for free. And if the employer is already aware of what you are up to, you probably don’t need to offer much in the way of compensation. But if this person is of value to you, and can provide a valuable service or guidance, then just do what you think is fair.


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