Most of the disputes we see in young companies trace back to a document that was never written. The good news is that the list is short. If you are starting a business this year, these five belong near the top of your to-do list.
The essentials
- An operating or shareholder agreement that says who owns what, who decides what, and what happens if someone leaves.
- Founder vesting terms, so ownership is earned over time rather than all at once.
- An intellectual property assignment moving everything the founders created into the company.
- Standard customer terms you can send without drafting from scratch every time.
- A simple record book of formation filings, ownership and major decisions.
None of these has to be elaborate. A clear two-page agreement signed now is worth far more than a perfect forty-page one that never gets finished.
Why now
Early on, everyone agrees and the stakes are small, which is exactly when these conversations are easiest. Once there is revenue, an investor or a disagreement, the same questions become negotiations.