You’ll need to know this if you’re ever going to launch a business with someone

So you and your best friend have come up with the next big thing and started planning what to buy with all the money you’re about to make? Hold it right there. While I don’t want to dampen your spirit, one thing you really should get before becoming official business partners is a Shareholders Agreement (SHA). Boring, sure. But SO IMPORTANT.

Basically, it’s a contract that puts all your rights, responsibilities and other legal things down in black and white. It protects each of your interests in case things ever turn sour (hey, you never know!)… and reminds you what you agreed to in the first place.

Legally, you don’t have to have a Shareholders Agreement, and while differences of opinion are bound to happen, having a SHA will hopefully keep you on the same page and make running a company together
smooth sailing.

You might think you and the person you’re going into business with are rock solid, but things can turn nasty quickly, especially when money’s involved. It’s worth setting up a SHA in the good times to get you safely out of the hard times, should that happen (not to mention, it’s a small price to pay now if it saves you from costly legal fees later)!

Need a SHA? Speak to your lawyers or the friendly team at lawpath.com for help.

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Tanja Watts
tanja@poppyrenegade.com


 

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