4 ms·
FWIW incorporation is not time consuming NOR expensive. But yes, you're right that a simple written agreement is much better than nothing (though doesn't provi
by rohamg 12y ago
FWIW incorporation is not time consuming NOR expensive.
But yes, you're right that a simple written agreement is much better than nothing (though doesn't provide full protections on both sides - founder vesting, dispute resolution, etc.).
If your cofounder is a half-decent business guy he knows both of the above, which makes this situation somewhat suspect.
- webwright 12y agoIf you're incorporating with the purpose of eventually raising money/selling stock (which means a C corp), it's non-trivial... I assumed that's what they would do given that the OP was talking about raising $. But yeah, it's quick and dirty to S-corp it or LLC, depending on what state you're in. I've seen a lot of side projects (my own and others') peter out for various reasons, which is why I think front-loading it with incorporation is a bad way to spend money/time. With a good shared (WRITTEN!) understanding on vesting/disputes/etc, you can mostly de-risk it... But not in the buttoned-up way a lawyer could.