Founders Agreement Example

The agreement of the founders is always better to be in a written format than to be an oral contract. It is also important that it be designed with the help of a legal team that ensures the elimination of all loopholes that can be exploited. You should also outline when and how you and your co-founders would be in good standing with the sale of intellectual property. Who makes that decision? Is this a majority decision? Up to the CEO? A unanimous vote? And if this IP is sold, who will get the money? Be sure to outline all of these factors in this section. Tax issues are difficult — and we recommend hiring a tax expert to help you design this part of your business agreement. What you write here will be so specific to your business and your business structure, so don`t try to swing it on your own or copy it from a model. It`s one of those times that it`s a good step to invest part of your track. Here are some steps you can take to conclude a founder`s agreement. They are not binding, but they are a good general guide that you should follow when you follow this process.

Here, you determine the percentage of each member`s business – that is. You and your co-founders own. This number can change if people join the company and leave it. If your business is an LLC, you should also know what percentage of each member`s management interest has. This means that you need to determine whether each person is just an owner in an economic sense or whether they also play an active role in management. “I started a business with four founders and we didn`t define roles,” writes remote work expert Jason Lengstrof. “What happened in the end was that a person didn`t do anything that didn`t interest him, a person would start a series of tasks and do them half-finished for someone else, and one person was only able to manage the process-based work, which the fourth person (me) left to do the rest (and write the lawsuits). It fuelled resentment and made it very difficult to adapt roles in the future, because it was found that I could do anything and therefore I became the last point of responsibility, even though we had defined new roles afterwards. Our only way out was to sell the business. Here are some templates of founding arrangement to get you started.

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