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?

UPDATED: Aug 5, 2012

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Aug 5, 2012Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

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


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption