Startup Project
So we are getting a team together at the moment and starting the R&D of a new project. We want to set up an agreement that lays out our share of the revenue of the product if it was to ever reach that level. We know each of our %'s, but we want to make it official, so no one can get screwed over in the end.
Who would I contact to get something like this completed, and if I could do it on my own, how would I go about it?
Thanks.
3 Answers
Try legalzoom.com. If you're setting up a LLC, they have a pretty simple template for it. It will cost you less than $300. As long as you're not looking for anything super specific or unusual, they should do the trick for you. You can lay out the percentages for each person.
It's good lean option. I've used it several times. I've also used a lawyer for more complex businesses. LZ gets the job done cheaply for cookie cutter docs.
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This is awesome. However, I'm a little confused. Which document would I be choosing? – Slandau 13 years ago
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There are pros and cons to each type, but generally an LLC will be the best choice for a small company (group of guys) getting started. It gives liability protection, you can enter multiple partners with varying percentage levels and it has no double taxation on compensation (like corps). http://www.legalzoom.com/limited-liability-company/limited-liability-company-overview.html – Landon Swan 13 years ago
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For an LLC, isn't there a fee you have to pay each year or so to keep it afloat? Also, if you do not make any money, there are no taxes specific to the LLC correct? – Slandau 13 years ago
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Yes there is a yearly filing fee. It varies A LOT by state. Check your secretary of state for exact numbers. Yes on taxes, no profit, no tax, but you still have to send in a return showing zeros. http://www.legalzoom.com/llc-faq/llc-operating-costs.html – Landon Swan 13 years ago
You should contact a lawyer and prepare written agreement.
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That's what I was afraid of...lol. Any idea of the cost of something like that? – Slandau 13 years ago
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The only way is to ask you lawyer. It depends. – Ross 13 years ago
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Well then I will give that a shot. So there's no templates to draft something like this on our own? – Slandau 13 years ago
What foundrs.com sets out to do - albeit thinking about agreements that will turn into stock allocation rather than revenue share - seems very like what you want.
