I am planning on joining a start up with someone as a co-founder and right now we're in a hurry to get product off the ground. I've worked with this person in
a trial period and I believe that we has the skills to make this company work. He has established the S-Corp company and been in business for a while.
I would like to defer the bulk of the legal costs for the start up by having an "Memorandum of understanding" on the important terms of the co-ownership.
Thus, resources can be spent on making product rather than atticipating and preparing for success that happens about 1/3 of the time. And legal is expensive, but probably
less expensive than a lawsuit. Ergo, I will be running the "MOU" we reach though a lawyer regardless.
Unfortunately, this will be my first start up, so I am unaware of the "important terms" and what to ask for beyond the basics.
I have covered with him:
2a. As a side question.... How do I prevent myself from being shoved out the door 1 day before the 1 year cliff?
I have the following questions:
While your intended approach is rational, here's the downside that I see:
Disclaimer: This information does not constitute legal advice and does not establish an attorney-client relationship.