Going into Business with Someone Else

Where DIY and online incorporation services really fall short is when a business has multiple founders.

That’s because agreements between founders almost always require customization. The only way to get that agreement done properly is with a lot of discussion.

• How do they want to earn and vest equity?

• How will decisions be made?

• How to break a deadlock?

• How will they go their separate ways?

Etc.

There are thousands of ways to approach these issues.

My job as an attorney is to ensure that the founders think and talk through all the important points.

An off-the-shelf agreement is not likely to work well because this is not a cut-and-paste exercise.

But that’s exactly what online contract template systems are. They have a limited Q&A, and they can’t handle anything that doesn’t fit neatly into a particular box.

Consider what’s the important reason for the founder agreement: it’s to make sure that the parties talk through all the important considerations about how their relationship will work.

The agreement documents a shared understanding. It gets the founders in sync.

An online contract template can’t accomplish that.

If you’re considering going into business with someone else, let’s talk.