One of my close relative contacted me asking if I can do a 'Shore Interface'(used on ships for management) project for him in .net after that he started talking about registering a company under us, saying "if required we can hire someone for coding". Which makes me feel he only contacted me so he can register company with my help.
My concerns are, previously he did same project with his colleagues which never worked for them. These guys had big salaries, 2-3 times of well paid people. Initially they had contacted me to work on it but later they hired developers by paying them less than 1/4th of their salaries. Plus I don't even think they had any original ideas for this project, as I was given account of their "future competition" and they simply planned to copy it. With this they planned to invest one time in development and probably thought of earning millions.
The guys they hired had 10 year old coding style, they used table for front end template, had 'this website works best on IE at xx resolution' at bottom, their template had fixed sidebar navigation which will push half of content out of screen. Later I got to see the code and database, they used college level login where they check two textboxes without much validation and passwords were not encrypted.
So my first concern is what kind of legal troubles I might face just by partnering in company registration especially if he hires somebody like those developers plus he has no respect for copyrights when using images etc on front end.
I am thinking that I will ask him to pay me certain amount for first six months just for development. If he goes ahead with it and wants to register company under us, I am not sure what kind of contract it will be. If I am not developing then I won't be taking risk of registering either. I am not sure what will be the best way to say it to him.