When the company is not formed yet and is still an idea in an entrepreneur’s mind, looking for partners with various skill sets and experiences, what kind of legal risk or personal liability does one face acting in such a manner where they are looking for partners and talking to professionals?
How would you go about promising let’s say 5% equity in the company when it’s formed and bonuses on successful milestones without making yourself personally and financially liable in case the whole idea doesn’t work and we end up not forming the company and not pursuing the idea?
You should talk to a lawyer in your jurisdiction and perhaps read some books so you understand the general lay of the land. The level of generality at which you’re asking this question makes it difficult to give a concrete answer, and if you’re worried about liability and how to paper your arrangements with investors, you should be speaking to a lawyer (consider looking for an entrepreneurship law clinic if you can’t afford to pay an attorney at this stage).