
A friend is helping with my startup. What's the legal arrangement we need? - cody3222
My friend is helping me develop my startup. He&#x27;s doing it on the side and will not be an employee.<p>What do I need to do now, from the legal side, to protect the company (and avoid red flags to investors)?<p>He&#x27;s doing it all for free, and is happy to as he&#x27;s using new technologies he wants to learn. The classic worst-case scenario is your friend suing you down the line when you become successful.
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icedchai
You should have him sign some sort of work-for-hire / IP agreement. Absent
such as an agreement, all of the work he does is owned by him, not your
company.

Likely, he will refuse to sign such an agreement without compensation.

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cody3222
Thanks for the advice. That makes sense. I think I can structure something
with upside for him like right of first refusal for the CTO role when funding
hits.

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angersock
_> He's doing it on the side and will not be an employee._

Then congratulations, he's a cofounder.

Treat him as such.

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sharemywin
I would search unconscionable contract. I think there's some good advice about
it there. Maybe search exploit my friends.

