When two or more people are considering starting a business together, it may make sense for them to enter into a written agreement even before they form an entity.  A founders agreement usually addresses such issues as contribution of assets to the yet-to-be-formed entity; ownership percentages in the entity; allocation of income, expenses, assets, and liabilities of the entity; and the terms of a buyout of one founder by another.  A founders agreement can be valuable in the event the entity is never formed and a dispute arises.  It can also provide the template for a shareholder agreement after the entity is formed.

I am a lawyer and an entrepreneur in Denver.  This is the first in a series of posts about legal issues affecting startups.