If you`re starting a business with another person, it`s important to have a co-founder agreement in place. This legal document outlines the terms and conditions of your partnership and helps prevent misunderstandings and disputes down the line.

Here`s a breakdown of the typical elements you should include in your co-founder agreement:

1. Roles and responsibilities: Clearly state each co-founder`s duties and responsibilities within the company. This ensures that everyone is on the same page and prevents conflicts over who is responsible for what.

2. Equity distribution: This section outlines how ownership of the company will be divided among the co-founders. You`ll need to decide on the percentage of ownership each person will have, and how this will be affected by any future investments or dilution of shares.

3. Vesting schedule: A vesting schedule determines when each co-founder`s ownership stake in the company becomes fully vested. This is important because it can help prevent a co-founder from leaving the company too soon and still retaining a large share of ownership.

4. Decision-making authority: Determine how major decisions will be made within the company. This includes things like hiring or firing employees, making big financial decisions, and setting the direction for the company`s growth.

5. Intellectual property: Make sure you outline who owns the intellectual property created by the company. This includes things like patents, trademarks, and copyrights.

6. Confidentiality and non-compete agreements: Make sure you include clauses that prevent co-founders from sharing confidential information or competing with the company. These agreements help protect the company`s intellectual property and prevent potential conflicts of interest.

When drafting your co-founder agreement, it`s important to work with an experienced attorney who can ensure that all of the necessary elements are included. Every co-founder agreement will look different depending on the needs of the company and the preferences of the co-founders involved.

In general, a co-founder agreement should be clear, concise, and easy to understand. It should outline the expectations and obligations of each co-founder, as well as the consequences if those obligations aren`t met. By having a solid co-founder agreement in place, you can set your company up for success and avoid any potential conflicts down the line.