To me it sounds like a move to retain your IP under their ownership, I would at least specifically resolve that you own your own IP, and there is no non-compete clauses in anything, but IANAL. Additionally, it seems at the very least they want to be privy to your IP and/or clients, so I would perhaps get them to sign a non-compete with you ... Outside of that, I would say that it sounds more like a partnership or something, so I would think of it like that. Conceptually having your own plans dependent on another sole entity means that you should work against that to get as much outside business, at least, that would be best for your company, especially if it isn't a partnership. Again I am not a lawyer though!