A Founders Agreement is an essential legal document for start-up companies that outlines the roles, responsibilities, and rights of each founder. It acts as a contract between founders and defines the terms of their relationship. The agreement covers topics such as voting rights, profits and losses, intellectual property, ownership of stock or shares, capital contributions and how decisions will be made. Without a Founders Agreement in place, disputes can quickly arise between founders. Writing a Founders Agreement provides clarity to the business relationship between founders and helps promote harmony and collaboration as the company grows.