In most jurisdictions, for-profit associations, without their own legal personality, are general partnerships for contractual liability purposes and are taxed as partnerships. The structure is flexible and easy to implement. It is also more risky for its members, as each partner has full joint responsibility for the partnership`s obligations. There are many reasons why the founders of a new company want to create an entity that recognizes their members with limited liability. However, if the company does not have a product, customer, investor or turnover, founders may prefer to defer cost and paperwork distraction to a later date. In this case, they are indeed in general partnership, whether or not they intend to achieve this result. This constitution agreement formalizes the agreement. A business creation agreement is also called a shareholders` pact. It is a document for situations where the founders of a company, a company or a company share the equity equally. It may also contain information on how long the founders must be part of the agreement to fully transfer their shares. The draft enterprise agreement may also contain information about the founders about their roles, responsibilities, management and capital management powers and more. 30. Full agreement.

The parties recognize that this agreement constitutes the whole agreement between the parties with respect to the purpose of this agreement and can only be amended by other written agreements signed by all parties. It is recognized and it is agreed that there are no oral statements or guarantees of any kind between the parties. Creating a well-developed business creation agreement avoids situations that could hinder business growth and development or create uncertainty in the way you do business. Make sure, at the time of the agreement, that all statements and details are verified and that everyone agrees with what is written. If a single founder remains a partner of the company at any time, the company will continue as the individual company of the remaining founder until his resignation, without the rights of a founder or former founder being affected as part of this agreement. If one of your co-founders contributes to something other than cash, you all need to find the monetary value of that thing and save it here. They must also determine whether members will continue to contribute capital throughout the life of the business or only during this initial investment. This agreement governs the partnership between the founders who act as [the company`s name] (the “company”). The company will continue permanently unless it is dissolved in accordance with this agreement.

The founders will encourage the company to register its fictitious name in the jurisdiction in which it operates, as soon as reasonably after the date of that activity. The main address of the company is determined by the majority of the founders and is first: [address]. Each founder has the same stake in the company.