The solution to this problem is quite simple and simply requires that each founder have a position indicated (CEO, CMO, etc.), each role contains a list of responsibilities and each founder commits to a minimum amount of monthly hours. The provision should also say that if a founder does not fulfill his minimum responsibility, the other founders may ask him to leave. It is difficult to determine who has changed the most in the last 12 years: Thrillist or its co-founder and CEO, Ben Lerer. 4. Get all the legal advice you may need. As I said before, it is a good idea to have a tax expert who helps you chart the tax field. But it is also a good idea to have your founding arrangement verified by a lawyer, because it is a legally binding agreement. A professional, legal and un invested eye on the document can help you ensure that you are all protected in the future. You may also have legal technical characteristics that you may not have noticed as non-lawyers.
A founding agreement is a basis for how your co-founder relationships will work in the future, how structured your business is and what each owner brings to the business. It is important, no matter what type of business structure you have. Here, you determine the percentage of each member`s business – that is. You and your co-founders own. This number can change if people join the company and leave it. If your business is an LLC, you should also know what percentage of each member`s management interest has. This means that you need to determine whether each person is just an owner in an economic sense or whether they also play an active role in management. 3. Take the time to chop hard things. And then it`s time for difficult discussions! That`s if you and your co-founders have to go through all the tricky things, from justice to compensation to resignation, and find out what you want to do. The decision to forgo a written founder agreement worked for BlackBuck because they shared complementary expectations and verbalized their agreement on roles and responsibilities.
Although a founder`s agreement is an optional legal document, which is usually replaced by a more comprehensive document when the first major investment is made, it is one of the most important documents for the success of a start-up. And yet, so many start-ups don`t. Our advice is this: as soon as you know you are serious about the project, try to create a business agreement and make sure the above issues are included.