6. Check and sign! Finally, you give each of your co-founders time to check their copy of the foundation agreement, consult their lawyers, if necessary, and then sign and date. Once signed and dated by everyone, it is a legally binding document. Be sure to record an electronic copy with all the signatures your entire team can access so you can get them later. Every startup is different, and every founder has a different relationship with each investor, so there is no real one-size-fits-all approach. There are good compensation rules for start-up creators, but also bad policies and some guidelines that directly kill a start-up. Startup creators should own all IP assets in writing to avoid costly claims filed, among other things, by patent rolls and companies trying to copy your business model. For the creation of a new business, assigning the company all the relevant intellectual property is a proven method. There are two types of IP allocation agreements to consider: Fortunately for you, we have developed a comprehensive guide to investing in seed funds.

In Startup Equity 101, you`ll find everything you need to know about this section. I work with many entrepreneurs and startups, and one of the points I want to emphasize is the importance of a strong enterprise agreement in working with partners. Now, before I go on, I would like to say that with regard to an «enterprise agreement» I will advocate for a simple discussion and because limited liability companies (LLCs) are the preferred choice of companies for many entrepreneurs. In addition, the same issues I will discuss here would apply in the same way in a company context (the corresponding documents are a shareholder/buyout agreement and the company`s statutes) or on a general/limited liability company (the corresponding document being the company agreement). Once your start-up is ready to encourage private investment by individuals or companies, a shareholder contract must be entered into. It is one of the most important founding documents that helps determine the rights and commitments of these shareholders and their ability to exercise those rights.