Thanks for the input! She's full time (though more like double full time) front-end engineer and designer. Designing both the web app and ios and android apps. Definitely worth it :)

Neither of us have received any pay at this point.

Also, YC invests at that rate for companies without even an idea. We have a product launched in beta making several hundred dollars a day (inflates on weekends), with about 82 signed up clients most of which are going to start becoming more active (spending more money) as soon as we launch our iPhone app. We should be fully launching in the next month, at which point we expect to start raking in way more money.

At that rate, you shouldn't even bother with an incubator or accelerator. If profit is looking good, no need to raise funds unless you guys are looking to expand your team.

Yeah, we're an LLC at this point. He incorporated before I joined.

No, we're good friends... We've been more focused on just getting going. Admittedly stupid on my part, but if anything does go sour, I own all the code and all tech stuff is in my name.

you are naive to keep working without your arrangement written in stone.

You're good friends - for now. That can change in an instant.

Code "ownership" doesn't matter if he can afford better lawyers than you.

I agree with you and will be rectifying it soon.

I've been in this position 3 times now. Trust me - you want to get documentation signed as soon as possible (yesterday, really). When money and equity is on the line, "friendship" can, and often does, go out the window in an instant.

If you assume your market rate, you can figure out how much money you would have drawn as a salary (since it's unpaid), and consider that as an investment. Compare that to the 80k he's put in, and maybe that will help settle the numbers.

I'm admittedly a bit lost as this is my first time in the position I'm in so any input would be great. Also if anyone is looking for a mentee, I could really use someone to talk to about stuff on a weekly basis.

Since you're green we can't see an e-mail address. May want to share a contact method with us directly.

If you're not compensated in writing in the LLC agreement (which you would've signed), and you haven't been compensated otherwise or signed away your rights, then you own the code you've written and can act accordingly when it comes to negotiations. That may not get you very far, but it does give you some leverage.