🤝To avoid being left with nothing, you'll have to face the Founders' Agreement.

Here are 3 key mechanisms that must be included. Without them, it's better not to start a potentially large business.

⏳The Vesting Rule - shares are not given immediately, they must be earned (usually over 4 years).
You and your partner receive them in portions each month over 4 years. If you leave early, you stop receiving shares. And after a year, you'll only get a quarter of your stake.

👀 Next is Cliff - a probationary period within vesting.
If a partner leaves (or you have a falling out) before a year has passed, they leave with zero.
This protects against undesirables who get excited about an idea but bail after 3 months, leaving you to deal with common problems alone.

🖥 IP Assignment (Everything belongs to the company)

Did you code at home on your laptop before registering the LLC? By law, that code belongs to you personally, not the company.
If you (or your co-founder) leave, you can legally prohibit the company from using that code.

Investors know the risks. They won't give a cent until they see a document that all intellectual property has been transferred to the LLC's balance sheet.

If you don't want to piece your company together, check any agreements through us.