Before You Call Someone Cofounder, Get This in Place.

Sep 22, 2025 12:44 pm

Starting a business with a cofounder without a clear, written agreement is like building a house without a foundation.

 

It might stand for a while, but the cracks will eventually show.

A Co-Founder Agreement isn’t just “legal paperwork.

 

” It’s a roadmap for your partnership.

It lays out, in black and white, the terms of your relationship.

 

Important things like ownership, responsibilities, equity vesting, decision-making power, and even exit strategies are clearly spelt out.

 

Why?

 

 Because clarity now saves conflict later.

And let’s be real…

 

 disagreements will happen.

 

It’s not a matter of if, it’s when.

 

That’s why your agreement must also include a Dispute Resolution Clause. T

 

his makes sure that if things ever get messy, you don’t waste years and millions fighting in court.  


Instead, there’s a clear, agreed path to resolve issues quickly and fairly.



I have seen many startups collapse not because of a bad product or lack of funding. They collapse because cofounders couldn’t agree on how to work together.

 

So, if you’re serious about protecting your business, protect the relationship first.

Get a tight Co-Founder Agreement in place.


And to do this, you need a business lawyer who understands the startup ecosystem.   


as you build, make sure you are building on a solid ground.

 

To your Legal Sense.

#barinaadalegal

#startuplawyer

#Businesslawyer.

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