FIVE IMPORTANT LEGAL DOCUMENTS EVERY TECH STARTUP SHOULD HAVE.
- Shareholders Agreement: These types of Agreements are between all of the shareholders of the Company, they agree to regulate the exercise of some of their rights as shareholders, like shareholders rights of first refusal, rights to transfer shares, redemption upon death or disability, dispute resolutions, respective interests of partners etc. Please note, that this startup document must not be overlooked as it can make inviolable in the event that a co-founder leaves.
- Intellectual Property Assignment Agreement: This Agreement is needed for a startup that wants to attract investors to help fund the company. Any form of intellectual property that is critical to the success and operation in your business should have detailed ownership. In Technology business, it is the value of the intellectual property assets that the investor pays for.
- Employee Contract/Offer Letters: They help to tie the employee to the company. An excellent lawyer should draft this agreement. Generally, it should state the terms of the employment, job description, who they report to, commitments and all other rules the employee must abide by, etc.
- Bylaws: This agreement helps to provide the legal backbone for how the company will operate. If not drafted, the state statutes will control your company. So, it is more preferable that your company has its own rules that suits how you want the company’s culture to be.
- Non Disclosure Agreement: (Confidentiality Agreement) Please do make this available before discussing your company with any third party, whether they be investors, prospective employees, meetings, so that your intellectual property, business models and ideas are protected.
Please make sure that identification is filled and agreements are duly signed and dated.
Disclaimer: This article was written by Nneka Nwagu for educational and informational purposes only and not for the purpose of providing legal advice. The content contained in this article is not legal advice or a legal opinion on any specific matter or matters. This article does not constitute or create an attorney-client relationship between Legal Bants and you or any other user. The law may vary based on the facts or particular circumstances or the law in your state. You should not rely on, act, or fail to act, upon this information without seeking the professional counsel of a legal practitioner licensed in your state. If this article is considered an advertisement, it is general in nature and not directed towards any particular person or entity.