A friend of mine and me (both early 20s) are teaming up with a seasoned professional person who owns a PR agency. We are jointly developing an Internet marketing idea that could turn out profitable. Me and my friend are the technical people, and the older person is bringing some connections to the table.
Before any money comes in I thought of drafting up a contract to define our exact roles, responsibilities and shares.
Do you have any such a draft document? Any remarks or suggestions?
I would get yourselves, and your company, an attorney. For many start-ups, "legal" is one of the largest expenses, but for a good reason. Early shareholder disputes are not healthy for a company, and a very clear agreement that affords everyone proper treatment.
While I do have a number of "form" corporations, and limited liability companies, I would nevertheless encourage you to speak to a lawyer rather than trying to do it yourselves. There are many smaller factors that go into the ultimate choices (where to incorporate, what entity, percentage ownership).