When technology on entrepreneurs or and startups, or perhaps a new subsidiary of a corporation or limited liability company based in Delaware or California, that is developing a new product or service in the digital marketplace, the issue of start up founder agreements often arise, and this issue is one that a Los Angeles business attorney with expertise in tech startup business strategy can advise the founding team.
Written Founder Agreements and Legal Considerations
When cofounders of a new startup, whether a technology or otherwise, start to work together to develop a business, many legal considerations arise which can eventually be reduced to founder or co-founder agreement.
Founders of a new startup are wise to consider the agreement, or the understanding between various cofounders, and while in some states an oral cofounder agreement may be binding, it is generally advisable to reduce the agreement to a written contract.
Written Contract Strategy for Founder Agreements
Contracts covering startup founder agreements can take various forms. These contacts may govern a variety of terms and conditions between the cofounders, such as percentage ownership, intellectual property ownership, financial terms, stock ownership, duties and responsibilities, meetings and company organization, and, me jurisdiction of formation of a company such a corporation or limited liability company (LLC). The founder agreements may be reduced into more that one written contract, some of which may be corporate or LLC governing materials, and some a standard written contract.
Consultation with an experienced contract attorney in Los Angeles, Santa Monica, Beverly Hills, Hollywood, or other local areas in Southern California can help entrepreneurs and technology startups consisting of multiple cofounders navigate startup founder agreements, and reduce their understanding involving company and business formation to a written contract that is simple and protects the venture and individual cofounders as they grow together.