Before You Go Into
Business Together
50% of partnerships fail. The ones that survive? They had clear agreements from day one. Exit terms, equity splits, decision rights, deadlock resolution — know what you're agreeing to before you shake hands.
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5 Agreements That Define Your Business
The contracts that matter most when you're building something with others
Partnership Agreement
SIGN / NEGOTIATE / WALK AWAYThe foundational document when two or more people go into business together.
Equal? Proportional to investment? To work?
Who decides what? Unanimous or majority?
How much? When? What if someone can't?
How do you leave? At what price?
Can you start a competing business?
What happens to their share?
Co-Founder Agreement
SIGN / NEGOTIATE / WALK AWAYSpecific to startups. Defines founder relationships before things get complicated.
50/50 or based on contribution?
4-year vest with 1-year cliff is standard
Who's CEO? Who controls what?
All founder IP goes to company?
Can you have side projects?
What if someone leaves early?
Operating Agreement (LLC)
SIGN / NEGOTIATE / FLAG ISSUESGoverns how your LLC operates. Required in some states, smart everywhere.
Per capita or by ownership %?
When and how are profits distributed?
Can members be forced to put in more money?
Can you sell your membership interest?
What can manager do without member approval?
How do you wind down the LLC?
Shareholder Agreement
SIGN / NEGOTIATE / FLAG ISSUESDefines rights and obligations among owners of a corporation.
Majority can force you to sell
You can join if majority sells
Right to buy new shares first
Do you get a seat at the table?
Access to financials and decisions?
Can't compete while a shareholder?
Buy-Sell Agreement
SIGN / NEGOTIATE / FLAG ISSUESDefines what happens when an owner wants (or needs) to exit.
Book value? Multiple of revenue? Appraisal?
Life insurance? Installments? Cash?
Death, disability, divorce, departure, dispute?
Lump sum or over time? Interest?
Must offer to partners first?
Can you compete after you're bought out?
Real Stories
Partnerships That Ended Badly
The 50/50 Disaster
"Two friends started a business 50/50. When they disagreed on direction, neither could outvote the other. No deadlock provision. The business sat paralyzed for 18 months while they fought in court. Eventually dissolved at a massive loss."
The Unvested Departure
"A co-founder left after 8 months with 40% equity — no vesting schedule. The remaining founder built the company to $5M exit. The departed co-founder got $2M for 8 months of work."
The Valuation Trap
"A partner wanted to exit. The buy-sell agreement said 'book value.' The company's book value was $50K, but its market value was $800K. The remaining partners bought him out for pennies on the dollar. Legal but devastating."
Questions Your Agreement Must Answer
What happens if one partner wants out?
Without clear exit terms, departures become lawsuits.
How are major decisions made?
50/50 splits without deadlock provisions = paralysis.
What if someone stops contributing?
No vesting = free equity for departed founders.
How is the business valued if someone exits?
Book value vs. market value can differ 10x.
Can partners compete after leaving?
Without non-compete, they can take your customers.
What happens if a partner dies or gets divorced?
Their spouse or estate could become your new partner.
AED 99 Today or AED 1.5M in Court Later
Business partnership disputes average $100K+ in legal fees. A 30-second analysis can prevent years of conflict.