Any contract draft before beginning a startup


3

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?

Contract

asked Jan 25 '11 at 07:09
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Vondip
577 points

2 Answers


1

I'm biased, but at a minimum go to Foundrs.com to specify an initial equity split. This way, things are clear between the partners. Later on, you can pay a lawyer to do the proper incorporation, with all the bells and whistles.

answered Jan 25 '11 at 10:14
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Alain Raynaud
10,927 points

1

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).

answered Jan 26 '11 at 04:13
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Jonas Jacobson
101 points

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