What to o if f I am the co-founder of a startup company, however I did not put down anything black and white or even under a contract?

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What to o if f I am the co-founder of a startup company, however I did not put down anything black and white or even under a contract?

I have been working for more than a year. If I should leave now, am I entitled to get the equity in the future if this start up is going to be successful?

Asked on August 5, 2012 under Business Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Speak with an attorney now. In theory, if there was an oral agreement between you and the other co-founder that you would receive 50% of the equity, that should be enforceable. However, that general answer will be modified by what type of a company it is (e.g. is it a corporation? an LLC? a partnership?), who currently owns the equity or shares, and the exact terms of your agreement--and remember: when money is involved, don't assume the other  party (the other co-founder) will "remember" things the way you do. You want to take steps now, before leaving, to solidify your position and protect your interests; an attorney can help you do this.


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