Hey. How would 2 Co-Founders split equity if one brings capital and advisory and one brings sweat equity (Full time work)?
The simplest way to accomplish this is to create a virtual salary and give each person the equivalent in equity based on their contribution.
Lets say you allocate 200,000 shares (or units if it's a LLC), @ $1.00 per share.
If person A puts in $100,000, they get 100,000 shares.
If person B has a virtual salary for $100,000, after person B has contributed a year's worth of time (or whatever metrics you come up with), they get 100,000. In this case though, the shares should be prorated on a monthly or weekly basis.
If person A contributes $50,000, then they would be expected to put in another $50,000 worth of sweat equity.
I hope this makes sense.