Cofounder agreements, before anyone walks away.
For cofounders in Toronto and across Ontario who want the deal in writing while everyone still agrees on it. We put ownership, vesting, IP and decision rules into the documents investors expect to see. Every piece of work has a fixed fee, agreed in writing before we start.
A free 15-minute call. You’ll know the fixed fee before any work starts.
What we help with
- Shareholder AgreementWho decides what, how shares can be sold, and what happens if a founder leaves, dies or stops working on the company. From $1,320
- Founder Vesting and IP AssignmentFounders earn their shares over time, and everything built before and after incorporation is assigned to the company. From $920
- IncorporationFederal or Ontario, with the founders’ shares issued in the split you agreed. From $600
- Stock Option PlanWhen the team grows past the founders, a plan to give employees equity without touching the founders’ deal. From $1,880
Prices shown are starting prices in Canadian dollars for the base scope of each item and may vary based on complexity. Government filing fees are extra. Your fee is fixed and agreed in writing before we begin.
What a cofounder agreement covers
- Step
Agree the split.
Decide who owns what, and why, while everyone is still optimistic. There is no legal formula; the agreement records the deal you make.
- Step
Make the shares earn out.
Founder vesting lets the company buy back unvested shares if a founder leaves early, so the people still building aren’t carrying someone who walked away.
- Step
Put the company in charge of the IP.
Every founder assigns the code, designs and brand to the company, including work done before it existed.
- Step
Sign the shareholder agreement.
Decision rules, deadlock, transfers, and what happens on a departure, in one document investors will read later.
Brooke & For Founders Law brought sharp legal judgment to every stage of building DMP, from our SAFE deal suite and shareholder agreement to IP assignment, privacy compliance and our terms of service. Her ability to move fast without cutting corners gave us the confidence to build on solid legal ground. We couldn’t have gotten here without her.
Questions
What is a cofounder agreement in Canada?
Usually not one document. Founders of a Canadian corporation normally sign a shareholder agreement, put founder vesting on their shares, and assign their IP to the company. Before incorporating, a short founders’ agreement can record the deal until those documents replace it.
Do two founders really need a shareholder agreement?
Usually, yes. With a 50/50 split and no agreement, neither founder can outvote the other, and corporate law gives no tie-break. The agreement sets how decisions are made, how a deadlock is broken, and what happens if one of you wants out.
What happens if a cofounder leaves and there was no vesting?
They generally keep all of their shares, and the company may have no right to buy them back. Fixing that later needs the departing founder’s agreement, which is why vesting is easiest to put in place at the start.
How should cofounders split equity?
There is no legal rule. Founders usually weigh past and future contribution, roles and time commitment. Vesting matters more than the exact split, because it protects everyone if the plan changes.
Can we add a cofounder after incorporating?
Yes. The company issues them shares by resolution, they sign onto the shareholder agreement, and their shares and IP are covered by vesting and an assignment like everyone else’s.
How much does a cofounder agreement cost?
We publish fixed fees: a shareholder agreement from $1,320, founder vesting and IP assignment from $920, or the Founder Pack with incorporation from $2,360. Your exact fee is agreed in writing before any work starts.
General information, not legal advice.
Read next
- Guide How should cofounders split equity?
- Guide What happens if a cofounder leaves without vesting?
- Guide How does founder vesting work?
- Guide Do I need a shareholder agreement?
- Guide How do I add a cofounder to my corporation?
- Free tool, 1 minute Vesting and Option Pool Slide the cliff and schedule to see what vests, and what a pool does to ownership.
- Free tool, 2 minutes Legal Health Check About ten questions for your kind of business, a score out of 100, and the gaps to close first.
- Free tool, 1 minute Federal or Ontario? Five questions to see which way the rules lean for your incorporation.
Tell us what you’re building on a free 15-minute call. Book a Free Consult