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Re: [newtech-1] Free Office Space, in LIC at the Water, in exchange for talent........

From: Anthony Z.
Sent on: Thursday, June 20, 2013 5:08 PM
+1 You get the smartest kid on the block award today, JJ.


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On Thu, Jun 20, 2013 at 1:33 PM, Jonathan Jaffe <[address removed]> wrote:
LOL Moshe. That's some pretty expensive 'free' office space. I think you'd need to be more transparent about the offer, space, amenities, term, amount of hours you expect for this person to put into Circlezon.com, etc.  For example, WeWork is $500/month base price for space in Midtown. If you are a designer and value your services at $75/hr, then you'd be willing to give away 7 hours a month for free space if you value that space at $500/month. LIC is not as convenient as Midtown, or the same environment as WeWork, so I'd expect the pricing to be lower, and thus, the amount of work you'd give away each month to be lower. If you would take 5 hours a month, then that's probably a fair shake. If you expect 20 hours a month, that probably should be stated upfront. A lawyer probably values his/her time at more than $75/hr.

I do foresee some potential legal issues here. You're not replicating LooseCubes because you are asking the person for a contribution in work to Circlezon. You may be in trouble for violating minimum wage laws and for avoiding paying Unemployment Taxes. It is my understanding that NYS has stricter requirements than Federal. I know you'd argue that these individuals are independent contractors, but because it is your space and your company, when they do work for you, I don't think they'd pass all 12 NYS DOL criteria - in particular #12 since you're representing them to be part of the 'talent pool' and they happen to work onsite. Penalties NYS imposes are approx $3000 per employee per day of misclassification - so nothing to sneeze at - at least for one of my close tech partners it was something that almost cost him his business. Your insurance might also refuse a claim if one of this person's clients falls and gets hurt in your space since they weren't technically coming to see you. So you might have to require your subtenant to carry GL, or double check your policy.

Of course, I may be overthinking. I have to be honest, work for barter when the barter is of trivial marginal cost to the barterer doesn't pass the smell test for me. Call me old fashioned, but while I appreciate the need to husband your funds, I think the people who help make a company successful should be compensated fairly in cash or equity, especially when you are running a for profit.



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On Thu, Jun 20, 2013 at 11:41 AM, Moshe Neuman <[address removed]> wrote:
Hi NY Techies 

We are moving in July into a bigger office space about 1800 SF open space, in LIC  51 Ave at the Water, close to 7 train.
we are a team of 10 awesome people and we are growing........
But as of now we would like to offer free office space, for exchange for  talent  and added value to our start up Circlezon.com like technical,designers,marketing,legal etc...

Cheers,
Moshe Neuman






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