As an entrepreneur, entering into a business venture with co-founders can be both exciting and challenging. It is crucial to have a founders agreement in place to outline each party’s responsibilities, ownership, decision-making authority, and more. Negotiating a founders agreement can be a complex process, but with the help of a corporate lawyer, you can ensure that your interests and those of your co-founders are protected. Here are ten tips to keep in mind when negotiating a founders agreement:
- Clearly define the roles and responsibilities of each founder.
- Determine how much equity each founder will receive and under what conditions.
- Establish the vesting schedule for equity.
- Decide how decisions will be made and how tiebreakers will be resolved.
- Determine what happens if one of the founders wants to leave the company.
- Establish how the company’s profits and losses will be distributed.
- Consider including a non-compete clause to protect the company’s interests.
- Address intellectual property ownership and protection.
- Establish a process for resolving disputes among the founders.
- Make sure the agreement is legally binding and enforceable.
A corporate lawyer can help you negotiate these terms and ensure that your founders agreement is comprehensive and tailored to your business needs. With a properly executed founders agreement in place, you can minimize the risk of future conflicts and protect your business’s success.
If you need help negotiating a founders agreement or have any other corporate legal needs, please contact Falcon Law PC at 1-877-892-7778 or info@falconlawyers.ca. Our experienced corporate lawyers can provide you with personalized advice and solutions to help you achieve your business goals.
