startup business - contract question

Discussion in 'Starting a Business' started by noobstartup, Sep 26, 2011.

  1. noobstartup

    noobstartup
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    Hello. I recently had a new business idea and have started my own company. I have just convinced a few developers to join me for a certain percentage of the equity and a certain percent of the profits. Now I am at a point where I need to draft contracts for these developers. What kind of contract should I be looking at? I have tried looking at templates of different business partnership contracts online, but have not found anything that indicates that I am hiring them for a percentage of equity and profits for their efforts. Unfortunately, at the moment, I don't have the money to get a lawyer and have them draft these types of documents up for me. Any help would be great.
     
  2. James Greg

    James Greg
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    I guess if you just state your terms in simple language making sense to point out the terms and conditions and having them all sign it up would be considered an agreement. have it photocopied and distribute it among all share holders. Start your business and when you earn enough to hire a lawyer then go for it and have it signed on a legally stamped paper. If the terms and conditions remain the same then no one would object.
     
  3. patrick0001

    patrick0001
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    Congratulation to you, having a chance to own a company. For contract part, you can convert those developer effort to a value, e.g. salary or commission. Then treat the value of as capital inject to your company. Finally, divided the equity percentage according total capital start a company. Hope this help.
     
  4. noobstartup

    noobstartup
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    Thank you guys very much, both of your replies were very helpful!
     
  5. BatAds

    BatAds
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    Just make some semi-professional contracts and give each person associated with your organization a copy.
     
  6. luch

    luch
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    If I were you, I would save up for a lawyer. It is vital that terms and agreements are laid out in black and white before starting with any sort of work on your new venture. I've witnessed too many businesses going down the drain because of misconceptions, miscommunications and disagreements between partners. If you plan to go big in the future with this business of yours, this is my suggestion. Coincidentally, I have a blog post coming up next week on this topic on luchzanirato.com. Watch out for it.
     

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