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Co-Founder’s Agreement
All you know about Co-Founder’s
Agreement
A founder’s agreement is a legally
binding contract, usually in writing, that outlines the roles, rights, and
responsibilities of each owner in a business. It could be a standalone
document. A founder’s agreement is designed to protect each founder’s interests
and to prevent conflict down the line.
A founders’ agreement is a baseline
for how your co-founder relationships will work in the future, how your company
is structured, and what each owner brings to the business. It’s important no
matter what type of business entity structure you have.
Reasons why a founders’ agreement is
essential:
·
Clarifies
each owner’s role in the business
·
Provides
a structure for resolving disputes among founders
·
Provides
clarity on when a partner should enter or exit business
·
Protects
minority owners
·
Signals
to investors that you have a serious business