The Equity Partner option
Pay nothing up front and nothing in year one. Whitelow takes a 15% stake in the LLC instead, vested over three years, and shares in your profits — so we only profit when you do. From month 13 there is a reduced fee of $297 a month. It is built for first-time founders with a strong plan and little cash, and it is not for everyone: there is a qualification screen, and we cap equity clients so cash clients fund the company while the portfolio grows.
Why we offer it
Everyone else sees a small business owner as a client to bill. We see a partner to build with — and we structure the pricing so it is true rather than just said. An advisor who takes 0.1% to 1% of a company is giving advice. We are delivering a full back office and fronting costs, which is closer to a venture studio deal than an advisor grant. A 15% vested stake reflects that.
The honest version: this is how we build a portfolio of businesses that grow stronger together, and it is how an owner with a validated offer and no spare cash gets a real back office on day one instead of in year three.
The terms
| Term | Amount | Why |
|---|---|---|
| Up front cost | $0 | Whitelow fronts state filing fees and recoups them from the first profit distributions |
| Monthly fee, months 1–12 | $0 | The stake pays for the service |
| Monthly fee, month 13 on | $297 a month | Half price; covers Whitelow's ongoing cost while the stake builds value |
| Ownership stake | 15% of the LLC | Granted as membership units, or a profits interest — your CPA confirms which structure fits |
| Vesting | 5% vests when your launch is complete; the remaining 10% vests monthly over 36 months. | You are protected if Whitelow stops delivering |
| Profit distributions | 15% of every distribution | Paid when you pay yourself, so cash only moves when yours does |
| Buyback right | After 24 months | 15% × 3 × trailing 12-month net profit, minimum $15,000 |
| If the business is sold | Whitelow receives 15% of proceeds | Standard tag-along right |
What protects you
An arrangement like this only works if the owner is genuinely protected. These go into the agreement:
- No management control. Whitelow gets no voting power over your daily decisions. You run the business.
- Unvested units return to you. If Whitelow stops delivering, anything not yet vested comes back.
- No personal guarantee. We never ask you to personally guarantee anything to us.
- If it closes, we walk away. If the business closes, our stake is worth nothing. That risk is ours.
- Independent year-end review. A CPA reviews year-end numbers, because we keep the books for a business we partly own.
- Everything in writing first. The agreement is attorney-drafted and reviewed by your own attorney before you sign.
Who qualifies
We screen for this option, and we turn people down. Not because the business is not good, but because equity only makes sense when there is a real business to take a stake in. You need:
- A validated offer — you are already getting paid for this work.
- You are working the business full-time, or ready to be.
- Projections showing at least $100,000 in first-year revenue.
We also cap equity clients at roughly one in four, so cash clients fund the company while the portfolio grows. If you do not qualify today, the Pay Up Front option gets you exactly the same service, and we will tell you plainly which one we think fits.
Whitelow Legacy Group is not a law firm, an accounting firm or a registered investment adviser. The Equity Partner option is governed entirely by an attorney-drafted written agreement. Whether the stake is granted as membership units or as a profits interest has real tax consequences in both directions — have your own attorney and CPA review it before you sign anything. We would rather you did.
If you would rather just pay
That is a completely reasonable choice, and plenty of owners make it. Option A is $2,497 one-time plus $597 a month, you keep every share, and the service is identical. Pay with cash and keep it all, or pay with a slice of the upside and keep your cash.
Frequently asked questions
Why would I give up 15% of my business?
You do not have to — you can pay up front instead. The equity option is for owners who would rather keep their cash in the business than hand it to us, and it means we only profit when you do. If you have the cash and want every share, Option A is the better deal for you and we will say so.
What does Whitelow get to control?
Nothing. Whitelow gets no management control and no voting power over your daily decisions. We hold a financial stake and information rights, not a seat at the wheel. You run your business.
What if Whitelow stops delivering?
Unvested units return to you. That is the protection built into the vesting schedule — the stake is earned over time by continuing to do the work, not granted in full on day one.
What happens if the business fails?
Whitelow's stake is worth nothing and we walk away. We ask for no personal guarantee from you. We carry that risk deliberately — it is what "skin in the game" has to mean to be worth saying.
Can I buy Whitelow out later?
Yes. You can buy Whitelow out after 24 months. Price = 15% × 3 × trailing 12-month net profit, minimum $15,000. The formula and the minimum are in the agreement before you sign, so there is no renegotiation when the time comes.
What if I want to sell the business?
If you sell the business, Whitelow receives 15% of the proceeds. That is a standard tag-along right, and it is in the written agreement.
Who reviews the numbers if you own part of my business?
A CPA should, and we insist on it for equity clients. Whitelow keeps the books for a business it partly owns, which is a real conflict of interest. We would rather name it and manage it with an independent year-end review than pretend it is not there.
Is this legal and tax advice?
No. The terms here are a summary of what goes into an attorney-drafted agreement. Whether the stake is structured as membership units or a profits interest has real tax consequences, and that is a question for your CPA and your attorney, not for us.
Think you might qualify?
Book a free business checkup. We will look at your offer, your numbers and your plan, and tell you honestly whether the equity option fits — or whether paying up front is the better deal for you.