Startup Agreements – LLC, Partnerships, Shareholders

Every startup, at some point, will need to put together agreements that govern the way it will operate. Startups can take several different business incorporation structure, each with its own unique agreement requirements

Limited Liability Company (LLC) Operating Agreement

A limited liability company is, in the United States, a specific form of a private limited company. It is a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. The members of a Limited Liability Company must establish governance and protective provisions pursuant to an LLC operating agreement.

Partnership Agreement

A partnership is an arrangement where parties, known as partners, agree to cooperate to advance their mutual interests. The partners in a partnership may be individuals or businesses and the terms and conditions of the alliance is set out in a partnership agreement.

Shareholders Agreement

A shareholders’ agreement is an arrangement among a company’s shareholders describing how the company should be operated and the shareholders’ rights and obligations. It also includes information on the regulation of the shareholders’ relationship, the management of the company, ownership of shares and privileges and protection of shareholders.

Employment Agreement

This is a formal agreement that specifies the conditions of the relationship between an employee and an employer including compensation and expectations. Also referred to as employment contracts, they are often executed for a specified period of time, such as one year.


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