Business & Corporate
Do my co-founder and I really need a founders’ agreement?
Two of us are starting a software company. We are friends and trust each other. Is a written founders’ agreement actually necessary at this stage?
Asked anonymously · 2 weeks ago · California, US
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1,095 views · 1 answers
1 lawyer answer
It is one of the most valuable documents an early company can have, precisely because things are friendly now. A founders’ agreement (or the equivalent provisions in your company documents) typically covers:
- Who owns what percentage of the company.
- Vesting, so a founder who leaves early does not keep all their equity.
- Assignment of intellectual property to the company.
- Roles, decision-making and what happens if someone leaves.
Investors commonly ask about these points during due diligence, and fixing them later is harder and more expensive.
This is general information, not legal advice — speak to a licensed lawyer about your situation.
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