Essential Documents Every Founder Needs

Entrepreneur, Small Business, Startup

Are you ready to start a business but are unsure of what documents you need? No need to worry because here at go NDA we can help you draft the necessary legal documents to get your business up and running.

Scroll down to find out what documents we consider essential when starting out in business.

Mutual Non-Disclosure Agreement

A mutual non-disclosure agreement is a legal document between two parties that agree not to disclose confidential information to any third party. If either party releases any of the confidential information shared, that party may then be liable for monetary damages.

What Is the Difference Between an NDA and a Mutual NDA?

A Non-disclosure Agreement is a legally binding contract that establishes a confidential relationship between two parties. An NDA can also be referred to as a confidentiality agreement.

Non-disclosure agreements when used by businesses who are entering into negotiations with one another are often referred to as Mutual Non-disclosure Agreements. In this instance, mutual NDAs allow both parties to discuss sensitive information without fear that it will be disseminated to the public and/or competitors.

Requirements for a MNDA

MNDAs can be tailored to the needs of the involved parties, however, there are six major elements that are considered essential:

  • Details of the parties to the agreement
  • A definition of confidential information – this is subjective to the circumstance
  • Any exclusions from confidentiality
  • A statement of the appropriate uses of the information to be revealed
  • The time periods involved
  • Miscellaneous provisions

SAFE Agreement 

As a business founder we know that funding is the biggest concern during the start of your business. Using SAFE agreements during startup can attract investors and increase business value.

SAFE Agreement is a type of investment that stands for: simple agreement for future equity (SAFE).

This is an agreement that is between an investor and a company that provides rights to the investor for future equity in the company similar without determining a specific price per share at the time of the initial investment This is an important agreement as this Agreement delays valuation until a future date while still leaving you the opportunity to invest or raise capital.

SAFE agreements are used during the start-up phase to generate capital and inject value into the company. As the business grows, additional capital will be raised that can and will increase company value. A SAFE agreement converts into company shares when new investors do priced rounds in the future.

A SAFE agreement can be a powerful investing tool and as such there are important terms that are often drafted within this agreement such as:

  • Discount: SAFE agreements may choose to include a discount.
  • Valuation Cap: A common term in which investors may use to obtain a more favorable price per share for the future by setting a maximum convertible price.

Once the terms are agreed upon and the SAFE is signed by both parties, the investor sends the company the agreed-upon funds which are applied, by the company, according to the relevant terms of the agreement. The investor does not obtain the equity until an event listed in the SAFE agreement triggers the conversion.

Visit the go NDA today to see how we can help you draft a complete, and tailored, SAFE agreement directly through your phone!

Investor Agreement

An Investor Agreement is a binding document between an investor and a company. This is a key document used by founders who may enter into investor agreements in the start up phase of the company or to later inject money into the company.

An investor may be an existing shareholder or even a new investor and the terms of the investment will depend on the type of funding the company requires.

A well-drafted Investor Agreement will allow for a company to effectively monitor its risk profile, which is significant when a company is in its start-up period, to ensure that all parties are clear on what the investor is entitled to, both now and in the future.

An Investor agreement can set out a number of crucial terms and can address how the parties involved allocate risk, can set out the rights and obligations of each party and, if necessary, how a party can exit the Investor Agreement.

An Investor Agreement should include several key terms for it to be a successful agreement. 

Visit the go NDA app to customize your  Investor Agreement today!

Partnership Agreement

If you are building a business that includes partners then this agreement will be key to running and maintaining a successful partnership.

A Partnership Agreement is a contract between parties involved in starting a partnership structured business. This agreement, between partner(s), sets out the duties and obligations of the partners to each other and to the partnership. 

This is an important legal document as this will detail all the rules, responsibilities, and financial details of a business partnership and its general partners.

Drafting a written Partnership Agreement lessens the possibility of disputes between partners at a later date because the rules for the partnership were previously agreed to and signed by all the partners.

A Partnership Agreement may need to include many terms within the contract.

Drafting a partnership agreement can, at first, appear to be a difficult task during the start up. Our mobile app, go NDA, aims to support you in drafting agreements with ease. Download today to access a wide variety of templates ready to be tailored to help you structure your business needs.

Services Agreement

A Service Agreement is a contract that sets out the terms and conditions for service between a Customer and a Service Provider and may sometimes be referred to as a contractor form, an independent contractor agreement, a contractor agreement or a freelance agreement.

A Services Agreement is a useful document to have as many parties enter into a services agreement orally and this allows for disputes to arise at a later date.

A Service Agreement can list the services that the provider will perform, details the time frame as well as compensation.

Why is a Service Agreement useful for founders? It is not uncommon for businesses, and startups, to hire externally and having a Service Agreement available will help founders successfully manage third party relationships as well as protect their business.

Want to draft a Service Agreement? Visit the go NDA app today where you can access our curated Founders templates document set with our affordable pricing – you can even download for free, no credit card required!

Starting a company means lots of documents that need to be drafted, signed and notarized. Visit the go NDA app to learn more about how our Template Library can help you establish your business with ease, directly through your phone.

Entrepreneur, Small Business, Startup

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