 deferred compensation structures, pre-funded startup
grellas: I have written an ominous-sounding article (entitled "Mistakes Founders Make - Ill-Documented Relationships") that describes some of the risks here. (http://www.grellas.com/faq_business_startup_009.html)For the venture: the IP developed by the loosely-affiliated team will belong to its individual members and not to the venture. Solution: need simple work-for-hire agreements (promise of future equity alone is OK as the "consideration").For the individuals: getting stiffed on the promised equity.By all means, do document this at least informally with a founder's term sheet.By no means should you attach a money value to the services performed. If you do, and it gets audited, you will all have tax problems (generally, your services would constitute immediately taxable compensation even though all you would get is a piece of paper for it at the end).  Keep all discussion on this framed solely as "x will get _% of equity in exchange for [whatever]" but without reference of any kind of money value.Do remember to describe the attributes to be associated with any equity (e.g., "100% immediately vested," or "20% immediately vested with balance to vest ratably over 48 months subject to repurchase by company at cost upon any termination of holder's service relationship with the company" or whatever fits your team's expectations).This kind of situation is inherently nebulous and can easily lead to problems with a far-flung team.Best advice: keep everything on a short leash. That way, if someone gets burned, hurt will be minimized.When trust is established, and company seems viable, get it documented legally ASAP.