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LSDefine

Simple English definitions for legal terms

Sweat equity

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A quick definition of Sweat equity:

Sweat equity: When someone becomes a part owner of something by working hard instead of giving money. This is often used when people become partners in a business by doing work instead of investing money. For example, if someone helps find real estate for a business, they might get a share of the business as payment instead of money.

A more thorough explanation:

Sweat equity refers to the ownership interest that a person gains in a partnership by contributing labor instead of capital. This means that a person can become a partner in a business by working for it instead of investing money into it.

For instance, if two people decide to start a business together, one person may contribute money to the business while the other person contributes their time and effort. The person who contributed their labor would have sweat equity in the business, meaning they would have an ownership interest in the company even though they did not invest any money into it.

Another example is if a person works for a startup company and agrees to take a lower salary in exchange for a percentage of ownership in the company. This person would have sweat equity in the business because they earned their ownership interest through their hard work and dedication to the company.

These examples illustrate how sweat equity allows individuals to become owners in a business without having to invest money. Instead, they can contribute their labor and skills to the company and earn an ownership interest through their hard work.

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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