The logistics of running a startup can be tough. All your legal bases need to be covered. Get something wrong and you will invite long legal battles. But you only have a limited budget. Spending thousands of legal fees is out of the question.

Thankfully, there are plenty of free online templates to explore. These are boilerplate documents. All you need to do is personalize them by adding your company’s details. Once you’ve finished, you’ll have a legally binding document. Eliminating the need to use a lawyer. These are some of the templates that all founders should know about.

Founders Agreement

A founders template is the first document that you’ll need. You should sign this before you start working on the business. This outlines how your business relationship will work. The roles of each founder will become crystal clear. You’ll be ready to deal with unexpected events like a founder suddenly leaving the company.

Organizing a founder’s agreement is fairly simple. You should be able to find a free founders template online. This gives you a clear format to follow. Key elements to include are:

Ownership structure. Clearly outline how much equity each founder will have in the business.
Responsibilities. List each founder and write what role they will be expected to play within the company. This can also include outlining the number of hours the founders are expected to spend within the business.
Funding provided. Keep a record of how much money each founder has committed to the company.
Voting rights. State which issues a founder can vote on and how any disagreements will be settled.
Termination policy. Describe how a founder can be terminated. It’s also helpful to outline what will happen if a founder decides to walk away from the company.
Expanding the board. You can include provisions for when you will be willing to take on new partners. This includes outlining what will be expected from them and how much equity they will be given.

Appointment Letter

As the company starts to grow, you will need to add new employees. This comes with a wealth of documents, like employee contracts and remuneration agreements. But the appointment letter is one of the most important. This is sent to the new hire. It outlines what their job responsibilities will be. More importantly, it contains your company policies. This helps set business attitudes. Because of this, most founders will want to examine closely these documents. They want to check that they are giving new employees a good first impression.

Consultancy Agreement

Consultants can be key to expanding your business. They can act as mentors, providing valuable experience. You can rely on the skills of your consultants to help you overcome complex technical problems. Or you can use them to open doors within the industry.

But before you start taking advice, it’s a good idea to have a consultancy agreement in place. This ensures that your experts are fairly compensated for their time. Usually, they will be given equity. This agreement also includes a non-disclosure clause, to protect your company secrets.

Mutual Non-Disclosure Agreement

As the business starts to take shape, founders will need to start exploring potential partnerships. But this comes with a problem. For the partnership to work, both sides need to give away some company details. A mutual non-disclosure agreement will make sure that your secrets are safe. This agreement states that any confidential information you share will be protected. Because of this, it’s best to wait until this document is signed before you start to get into the nitty gritty of negotiations.

Engagement Agreement

If you decide to move forward with your partnerships, you’ll need to sign an engagement agreement. This sets the terms of the relationship. This can cover a broad range of agreements. Sometimes, you might be working with a creative firm. This document can list the type of work they need to produce and how much you’ll pay. It can also be used for mutually beneficial partnerships. In this case, you’ll need to include details like how profit sharing will work.

Confidentiality Templates

Managing secrets is key to running a good startup. That’s why confidentiality templates are key. There are a few types of arrangements you can explore, depending on the circumstances. A Non-Disclosure Agreement (NDA) will stop people from sharing private information.

Founders might also be forced to state a non-compete clause. This prevents you from using your experience to start a competing business. Usually, you’ll need to wait around a year. Though some can last for up to five years.

Conclusion

Founders always have an overflowing to-do list. It makes sense to look for ways to cut down on your workload. That’s why using a free founders template makes a lot of sense. You’ll spend less time on paperwork and more time running the business.

6 Templates For Founders