What to keep in mind
Document capital, payment, roles, intellectual property, continued involvement, exit terms and consequences of unfulfilled obligations.
Vague verbal promises to contribute clients or working time can be hard to value or enforce.
Distinctions often confused
Equity contribution, shareholder loan and service provision are different legal relationships.
Frequently asked questions
Must all founders contribute equally?
Not necessarily; the agreed allocation must be lawful and documented.
Can an ownership percentage be reserved for a future founder?
A legally workable mechanism should be designed through capital and future issuance rules.
Informational content. It is not a substitute for professional advice.