Equity in a company though is only worth what a company is worth. He's open in saying that this is a part time project with no real focus/push behind it, other than his desires. In other words, it isn't worth much at this point.
So, to relate:
2) in exchange for a professional service from a top firm to file articles of incorporation, trademarks, and advice on setting up bookkeeping,
I'd put website design on that list, as I'm sure you would. Of course, top firm is only relative if you can get a "top firm" to consider your company worth the investment. In this case, I think the owner realizes the value of his company, and just wants to present an option to someone who may find it acceptable.
