Are there any standards for how to compensate Board members for a for-profit LLC? Is there a difference in what to ask for based on whether or not we are expecting a liquidity event within a few years?
Looking for advice about compensation and how to structure it. This is kind of a blank for me.
Backstory: A startup I advise is forming a board and asked me to join their Board. They work in life sciences, and the team is composed of technical co-founders.
They have few clients right now and I have been doing pro-bono consulting with them off and on for about 6 months. We talk about customer discovery and operational areas of the business, like constructing proposals, contracts / payment schedules, selecting legal / accounting providers, etc. Much of this has been responses to questions in email, some of it has been very hands-on.
The thing is the business model. Based on data we collected during customer interviews, I can see this taking off in a big way over the next couple years.
Some facts, in case they matter. The company is funded with seed capital raised from friends and family, along with revenue from client engagements / use of the product. They are looking to fundraise and would likely be seeking non-dilutive capital. The company will likely remain private, so stock is not an option.