What Goes in a Founder Agreement?
Short Answer
Before money changes hands, a founder or partnership agreement should identify the parties, entity, ownership, contributions, conditions to funding, use of money, authority, voting, compensation, distributions, records access, intellectual property, confidentiality, conflicts, transfer limits, additional funding, vesting, defaults, departures, deadlocks, buyouts, valuation, dissolution, and dispute procedures. The agreement should say what happens if a promised contribution never arrives or the venture cannot open. Funds should move through documented channels that match the agreement and company records.
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When Does This Become Urgent?
- A founder requests funds before formation or documentation
- Contributions are unequal or include services and property
- One person will control banking or accounting
What Usually Goes Wrong?
- Sending money to a personal account
- Calling every payment capital without defining repayment or equity
- Leaving control and failure scenarios unwritten
What Should You Have Ready?
- Draft deal terms and cap table
- Contribution amounts and conditions
- Banking and spending controls
- Roles, milestones, and exit expectations
What Typically Happens Next?
- Identify the business objective, current commitments, and decision deadline.
- Review the entity records, contracts, approvals, and facts that control the issue.
- Coordinate tax, licensing, employment, immigration, or other specialized advice where needed.
- Document the chosen structure and complete filings, consents, and agreements in the correct sequence.
The appropriate sequence and documents depend on the entity, transaction, location, and people involved. This overview is not a prediction of process or outcome.
Related Questions
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Also review Start a Business in Miami, the Starting or Relocating a Business to Miami hub, and the Ask Aaron hub.
We Don't Make Promises. We Have Results to Prove It.
Aaron Resnick has handled business disputes in Miami since 1998 and is a fourth generation Miami resident. He works hands-on on every case; the client gets Aaron on every major litigation issue, not a junior partner. The Law Offices of Aaron Resnick represents large corporations, Miami businesses and their owners, professional athletes and entertainers in Miami Dade, Broward and Palm Beach counties and across Florida in business litigation and business counsel. Call 305-672-7495 or request a consultation.
This page provides general information and is not legal advice. Prior results do not guarantee or predict a similar outcome.
Reading this page or contacting the firm does not create an attorney-client relationship. Requirements and deadlines depend on the facts. If your matter is time sensitive, call the firm.
