While there's no money, everything is easy. As soon as the first customer or the first expense comes along, the questions start. This is the list worth sorting out right away.
Checklist
- Who owns how much equity, and how is it earned (vesting)?
- Who is responsible for what: product, sales, money, legal matters?
- Who decides when you disagree, and in which area?
- How much does each of you work per week?
- Who is putting in money, how much, and is it a loan or equity?
- Up to what amount can each of you spend without asking the other?
- When, and how much, do you pay yourselves?
- What happens if someone leaves or stops working?
- Who owns the code, the design, the name and the domain?
- Are you allowed to work on other projects at the same time?
How to do it without a fight
- 1Each fills it in aloneEach partner answers all the questions on their own.
- 2CompareWhere you agree, write it down. Where you don't, talk only about that.
- 3Write it downEnter it in the Agreement in your workspace and both approve it. Every change needs to be approved again.
- 4Review it every 6 monthsThe company changes, and the agreement should keep up.
The Agreement in the app is your shared record, not a legal contract. When you set up a company, have a lawyer turn it into a contract.