Co-founders should agree in writing on ownership, vesting, roles, decision rights, what happens if someone leaves, and who owns the work created so far. These terms are easiest to settle before the company has value or employees.
Why early is easier
At the start, every founder is optimistic and the company has little value, so terms feel low stakes. Once revenue, investors or employees arrive, each decision carries real money and the same conversation becomes harder.
Terms worth writing down
- Ownership and vestingShares earned over time protect everyone if one founder leaves early.
- Roles and time commitmentClarity on who does what, and whether anyone works part time.
- Decision rightsWhich decisions a single founder can make and which need agreement.
- DeparturesHow a leaving founder’s shares are valued and bought back.
“A founder agreement is less about distrust than about giving a future disagreement a clear path.”
The agreement does not need to be long. What matters is that it exists, that every founder has read it, and that the company’s formal documents match it.
Common questions
Four years with a one-year cliff is common, meaning no shares vest until the first anniversary and the rest vest monthly after that.
For significant or unequal ownership splits, separate advice for each founder is worth considering.
Yes, with the consent the agreement requires. Many companies revisit it before a first financing.
This article is general information, not legal advice for your situation.
Elias Brandt
Elias advises owners on formation, transactions and contracts, and personally handles every matter the firm accepts.
elias@brandtlegal.example
