What you've written is quite contradictory; for example: why does he want 50% of a now defunct company?
You said that you made 6k in one week; after saying that you've been working on this start up for 3 years. Is the $4,000 the entire profit this company made over the course of those 3 years? Based on these inconsistencies, I'm finding it hard to follow your story.
To start; IANAL so YMMV.
It sounds to me like you went in with different mentalities. You were a founder; he was an investor. I realize that from your perspective, "he didn't put as much time in" as you did; however, you agreed to give him some share of the company for his monetary investment. That said, it sounds like the valuation agreed to was $6,000 when he invested and that by contributing $3,000, he would own 50% of the company.
However, if he only invested $1,000, then he actually bought only 1/6th of the company, not 1/2. My calculations say you owe him approximately $1,680 which includes returning his initial investment and the profits from a 17% share of the company (which he really does own whether you like it or not).
All that said, if he can document actual material contributions to your products, he quite likely has a legitimate claim for a higher share.
The lesson here is NEVER do business in any form of partnership without a written agreement as to the ownership levels, roles, and responsibilities of each partner.
We both were working on an ad start-up since last 3 yrs that stopped earlier this year then i was doing a side project which i launched that the side project made 6K in one week
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What you've written is quite contradictory; for example: why does he want 50% of a now defunct company?
You said that you made 6k in one week; after saying that you've been working on this start up for 3 years. Is the $4,000 the entire profit this company made over the course of those 3 years? Based on these inconsistencies, I'm finding it hard to follow your story.
To start; IANAL so YMMV.
It sounds to me like you went in with different mentalities. You were a founder; he was an investor. I realize that from your perspective, "he didn't put as much time in" as you did; however, you agreed to give him some share of the company for his monetary investment. That said, it sounds like the valuation agreed to was $6,000 when he invested and that by contributing $3,000, he would own 50% of the company.
However, if he only invested $1,000, then he actually bought only 1/6th of the company, not 1/2. My calculations say you owe him approximately $1,680 which includes returning his initial investment and the profits from a 17% share of the company (which he really does own whether you like it or not).
All that said, if he can document actual material contributions to your products, he quite likely has a legitimate claim for a higher share.
The lesson here is NEVER do business in any form of partnership without a written agreement as to the ownership levels, roles, and responsibilities of each partner.
We both were working on an ad start-up since last 3 yrs that stopped earlier this year then i was doing a side project which i launched that the side project made 6K in one week
That makes more sense then. That said; my original comments still apply.