4 min readTALAITY
In the excitement of starting out, founders focus on the product, customers and funding, and legal questions get pushed back. But some decisions are hard to undo once the company starts to grow.
Eight questions worth settling early
- The right legal form for your number of founders and funding plans.
- How equity is split between founders, and on what basis.
- What happens if a founder decides to leave?
- How major decisions are made, and who has a veto.
- Making sure the company owns the idea, code, designs and brand.
- Clear contracts with the first employees and freelancers.
- Protecting the trade name and brand early.
- Terms of use and a privacy policy if the product is digital.
The founders' agreement: the document many skip
A founders' agreement covers what the articles usually don't: each founder's commitments, vesting of shares over time, and how disagreements are resolved. It is one of the most effective tools for preventing disputes between partners.
The best time to agree on how you'll disagree is while everyone still agrees.
Getting ready for investment
Once investor conversations start, you'll be asked for an organised legal file. A company that put its paperwork in order early negotiates from a stronger position and closes faster.
This article is general information, not legal advice. Every situation is different; contact us for advice on yours.