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Co-Founder Agreement – LitiExpert

A Co-Founder Agreement is a crucial legal document that defines the roles, responsibilities, and rights of all co-founders in a startup. It helps prevent conflicts, ensures clarity in decision-making, and protects the interests of all parties involved. At LitiExpert, we specialize in drafting customized co-founder agreements to establish a strong foundation for your business.

Why Choose a Co-Founder Agreement?

A well-structured Co-Founder Agreement helps in:

  • Defining Roles & Responsibilities – Clearly outline each co-founder’s duties to avoid future misunderstandings.
  • Equity & Ownership Distribution – Specify how shares and ownership percentages are allocated.
  • Decision-Making Framework – Establish guidelines for making critical business decisions.
  • Conflict Resolution – Set protocols for resolving disputes between co-founders.
  • Exit & Dissolution Terms – Define what happens if a co-founder decides to leave or the startup shuts down.

How to Draft a Co-Founder Agreement

At LitiExpert, we ensure a legally sound and customized agreement through the following steps:

  1. Initial Consultation – Understanding the business structure, objectives, and co-founder expectations.
  2. Drafting the Agreement – Creating a document that covers equity, roles, decision-making, and exit strategies.
  3. Review & Negotiation – Co-founders review the agreement and discuss any modifications.
  4. Legal Validation – The finalized document is signed and legally executed to ensure enforceability.

Key Components of a Co-Founder Agreement

A Co-Founder Agreement typically includes:

  • Company Details – Business name, registration details, and objectives.
  • Roles & Responsibilities – Defined duties for each co-founder.
  • Equity Ownership – Percentage of shares allocated to each co-founder.
  • Vesting Schedule – Conditions under which co-founders earn their equity over time.
  • Decision-Making & Voting Rights – Process for making business decisions.
  • Dispute Resolution – Steps to handle conflicts between co-founders.
  • Exit & Termination Clauses – Terms for a co-founder leaving or selling their shares.
  • Confidentiality & Non-Compete Clauses – Protection of business secrets and prevention of competition.

Benefits of a Co-Founder Agreement

Prevents Future Disputes – Avoids conflicts over roles, equity, or decision-making.
Protects Business Interests – Ensures the company’s long-term stability and legal protection.
Clarifies Ownership & Control – Defines who owns what and how decisions are made.
Facilitates Smooth Exits – Ensures a clear process if a co-founder decides to leave.

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Frequently asked Questions

While not mandatory, it is highly recommended to prevent disputes and legal issues in the future.

Ideally, before launching the business or raising external funding.

Yes, the agreement can be amended with the consent of all co-founders.

The agreement will outline exit terms, including share buyback options and non-compete clauses.

Yes, most investors prefer to see a Co-Founder Agreement in place before funding a startup.

Why Choose Us

Experienced Professionals:

Our team consists of certified and experienced Registered Valuers who follow industry standards and legal requirements.

Timely and Accurate Reports

We deliver detailed and accurate valuation reports within the stipulated time frame, ensuring that our clients can make informed decisions.

Secure & Confidential

Documents and information are always kept private. Information shared with the lawyer are 100% confidential.

Still have Questions?

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