Founders Agreement Checklist

In most jurisdictions, for-profit and non-legally competent associations are general trading companies for contractual liability purposes and are taxed as partnerships. The structure is flexible and easy to implement. It is also riskier for its members, as each partner has full joint and several liability for the partnership`s obligations. There are many reasons why the founders of a new company want to create a business unit that grants limited liability to their members. However, if the company has no product, no customers, no investors, or no income, the founders may prefer to defer costs and paperwork to a later date. In this case, they are actually in a general commercial company, whether or not they intend to do so. This founding agreement formalizes the agreement. 1. Select a template There are templates on the entire internet, even at the end of this article. Choose one that best fits your startup or create your own with parts from different models. The goal is to create a founding agreement that best fits your needs, your co-founders, and the needs of your startup. And while the legal discourse may be intimidating, don`t worry yet.

We`ll talk about that in step 4. In this section, you don`t write down so much your expenses and budget – you may not even know them here – but you write about how you`re going to manage the budget and expenses. For example, is a person responsible for the budget or can they be approved by a particular person? What about the reimbursement of expenses that founders pay out of pocket? How should founders ask to be reimbursed? All this should be said here. The Founders undertake to keep confidential all non-public information relating to Project IP and not to pass it on to third parties except (i) to lawyers and consultants who must be informed of the performance of their duties, ii) to potential counterparties and/or investors who have been approved in writing by the Company and who are bound by a written confidentiality agreement; and (iii) in response to a request from a legal or regulatory authority. The last thing to keep in mind isn`t that beautiful – but it`s important. And this is a non-competition or confidentiality clause. .