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Contracts, Percentages, and other such necessities.

     
4:28 pm on Jan 17, 2007 (gmt 0)

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Ok, over the past summer, a group of us started a couple companies.

Copmany A has three people involved, with equal share in the company...basically we were all freelancing on different things, and getting each other and this allowed us to combine our work under one name...so each of our portfolios expanded and helped us gain more business. Now problems arise when one person is bringing in a lot of work, and is doing all that work, and rightfully wants a majority share from that work. If not all...otherwise, they might as well just do it under their other/old business name. Though, since there are operating costs, we should move a cut towards the business...5%? 10%? Who knows.

Anyhow, we want to formalize this agreement somehow, but would rather not get lawyers involved (two people are related, the third is a good friend) Basically I'm asking for a template contract that we can fill out, sign, and hopefully never have to use legally.

The bigger issue is the other company. It started as two people, they each had 50%, but needed more help starting up. So myself and one other each came in for 10%. We've got one major client, paying very little, but being a great guinea pig and finding flaws and ultimately, aiding in our development with their feedback. Now, that we have learned a lot, we want to rewrite the software but we need more people...and again, can't really pay...we are going to adjust our percentages to bring in a few more people, but we need to formalize this, so we can give the prospect a nice piece of paper to sign, and so when(if) we do start making decent money with this, there aren't issues of who gets what...again, nothing has been made official. Our talk, is that once we have more clients, we will each take salary, pay for operating costs, then split excess at the given percentages...but how do we get this all written out, so nobody feels unjustly treated when that time comes?

Is there a good source for template contracts, or tips on writing up these kinds of agreements online?

4:51 pm on Jan 17, 2007 (gmt 0)

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WebmasterWorld Senior Member 10+ Year Member

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we want to formalize this agreement somehow, but would rather not get lawyers involved
Impossibleóbut only if you want it done well. There are many do-it-yourself kits available for sale; I've seen them advertised in bookstores and office supply stores as well as online.
 

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