At item (6), you said "he already wired the money". Does the CEO show you any document for that ?

@Job_September_2020, yes, the receipt from his bank with details and all

Any company that needs something produced by an intern to get an edge, is already in trouble. Especially if you're the only one working on software.

@Erik If you follow the link in the OPs question, you can see that being doomed probably inevitable

Startups are notorious for failure. Investing in them is only for those who can afford to lose all their investment, not someone who has to borrow to invest.

@MonkeyZeus I am. But it's acceptable according to my country's internship regulations.

You should also consider the responses you got in your other question regarding how Bob is running this company. There are some red flags that suggest that you shouldn't pay for shares out of your own money.

@965311532 Please note that your countries internship regulations probably stipulate additional requirements with respect to internships. One of the criteria is almost certainly the requirement for on-the-job training. As you are the most technically competent person at the company, it's difficult to imagine how that requirement is met. It's likely your employer is in breach of EU regulations (or rather the laws that are derived from them).

"We don't have any written contract about this loan, everything is verbal" is a big enough red flag on its own.

EU may have a minimal wage rules appliccable - in Germany f.e. this is currently being raised to 12€/hour - with 500€ you are able to work ~42 hours per MONTH - if working more your employer would be in violation of local laws - just another big red flag. Check if minimal wages apply to interns.

500€ * 6 = 3,000; The shares will cost you 2,500€ at the end of 5 months. I assume you can't live off of 500€ for 6 months. The shares could also be worthless in 5 months. Honestly, without a written contract, the whole thing sounds like a scam The money can easily be returned by sending another wire transfer.

The best part of this is that you bothered asking. Lots of interns in your position learn by getting shafted. It's OK to be in this position. It's even better to learn before you get shafted.

Please explain your statement "the startup hasn't been formed yet, but the constitution is set to be next week." Does it mean the company is still privately own now and will go public next week, i.e. will have IPO (Initial Public Offering) next week to sell shares or partial ownership of the company to the public ?

@Job_September_2020 the company doesn't formally exist yet. Next week the constituents are going to go to the notary and sign the bylaws in order for the company to become a valid legal entity.

@JuliaHayward: I was about to write that same exact comment. That's a huge red flag that would make me run for the hills.

@965311532 Does this mean you will be signing the bylaws and will be listed as holding 2.5% of the shares in those bylaws? Also can you clarify if you have been paid at any point for your internship (since you wrote in your other question you've been there over a month), and if so, by what company, in what form (cash, check, bank transfer...), and did you get a payslip or anything similar?

@965311532 Also did you already get a copy of the bylaws? Don't sign anything you haven't read and understood from A to Z.

@jcaron I would be signing the bylaws and listed as holder of 2.5% of the company, as you said. I have been paid what I was owed, in time, with a wired transfer by one of Bob's companies (that I technically have the internship with). I have seen (through a third party) Bob's main company's financial statements, and they look perfectly normal, so again, I have little basis to think he's doing anything sketchy (risky? yes. opportunistic? maybe, but not sketchy)

@jcaron regarding the bylaws: the notary is supposed to send the documents over in a few days, and I'll be sure to read them carefully

I'm sorry to be negative, but this all sounds as sketchy as heck. It's not unknown for employees to borrow money to buy into a company, but it's usually when there is tangible evidence that the company is a going concern or has some long term prospects, and usually much larger sums are involved. At your level of involvement the stake should have been an outright grant, not purchased with borrowed money.

For understandable reasons you haven't identified the country where this is taking place. However, be aware that there are crucial legal implications of how this deal is structured. In the US it could be an incorporation or a partnership. In a US partnership ALL PARTNERS HAVE UNLIMITED PERSONAL LIABILITY FOR ALL THE DEBTS OF THE BUSINESS.

You may think the worst thing that can happen to you is that you'll have to come up with the 2500€ on short notice, but in fact if this is structured in an unfavorable way you could be responsible for all the debts of the company! You urgently need to consult with a lawyer who works for you, not the business.