When starting a business, it doesn’t matter if you are a corporation, LLC, or partnership. If you are in business with another person, you need a written agreement with all co-owners. These can be:
• Operating agreement
• Shareholders’ agreement
• Founders’ agreement
• Partnership agreement
All share a similar function, which is to ensure the deal between co-founders is set in stone so everyone can focus on building the business. A good agreement outlines ownership percentages, capital contributions and disbursements/salaries. It also acts as the company “prenup,” detailing what will happen to the business if you decide to part ways.