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  1. #1
    SitePoint Zealot ikjosh's Avatar
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    Anyone have a template for an equity agreement?

    Hi,

    I'm agreeing to do web, marketing, sales services in exchange for an equity stake in a start up. Does anyone have a template for this type of agreement? It's not a partnership, it's a minority stake.

    Thanks

  2. #2
    Life is short. Be happy today! silver trophybronze trophy Sagewing's Avatar
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    There are lots of ways to structure such a deal. An important consideration is whether the startup exists as a distinct entity yet or is it just on a napkin somewhere.

    For a real business that is already structured, it depends on whether they've issued stock or are offering membership in an LLC, etc. If it's just a notion of a business, you can do a letter of understanding or general agreement dividing equity in an entity to be formed later.

    If you are going to structure the deal based on a template that you got from an internet forum, you are sowing the seeds of failure around the deal. Before doing an equity deal, I would learn the language of such deals OR find a good attorney.
    The fewer our wants, the nearer we resemble the gods. Socrates

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