Anyone planning to start a business with one or more others knows there are many, many things to think about. Not only are there the details of the business operation and marketing plans, but there are serious considerations regarding joint ownership. Best advice, of course, is to discuss this with your attorney. But before you do, think about what position you’d like to take on the following questions from OnStartups and discuss each of them with your founding partners.
1. How should we divide the shares?
2. How will decisions get made?
3. What happens if one of us leaves the company?
4. Can any of us be fired? By whom? For what reasons?
5. What are our personal goals for the startup?
6. Will this be the primary activity for each of us?
7. What part of our plan are we each unwilling to change?
8. What contractual terms will each of us sign with the company?
9. Will any of us be investing cash in the company? If so, how is it treated?
10. What will we pay ourselves? Who gets to change this in the future?
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