Founder Legal Readiness: A Practical Checklist Before Growth

Start with the history rather than the template. Who contributed cash, code, equipment, introductions or unpaid work? What equity was discussed, with whom and in what form? Which decisions still depend on a verbal understanding? A short factual record of those points is more valuable than downloading a founder agreement that assumes facts the team has never agreed.

1. Ownership and founder decisions

• Confirm the current cap table and every promise that could change it.
• Record roles, authority, reserved decisions and what happens when founders disagree.
• Decide how future contribution, vesting and departure will be handled.
• Identify whether any founder needs independent advice because interests have diverged.

2. Intellectual property

List the code, domain names, designs, brands, customer materials and confidential methods the business relies on. Then trace who created each asset and whether a written assignment exists. Payment to a freelancer is not a safe substitute for checking ownership language.

3. Customers, people and money

• Keep signed customer and supplier agreements in one controlled place.
• Use written employment or contractor terms that address confidentiality and IP.
• Reconcile pricing promises, refunds, payment terms and any unusual liability commitment.
• Prepare a short list of disputes, complaints and regulatory questions before diligence.

4. Fundraising readiness

Investors usually discover inconsistency rather than complexity: different cap tables, missing approvals, unsigned assignments or contracts that cannot be located. A readiness review should identify what is material, who owns the fix and what can wait. It should not create a false impression that every imperfection has been resolved.