legal, partnership, partners, buy-outI have been working on a startup project with my partner for about a months and half. Needless to say this project is at a very early stage, we have merely generated ideas, I built a few prototypes (to which no IP applies), and we have not setup the LLC yet. It has become clear to me however, that I do not want to continue the business relationship with this partner because of disagreements which I believe will only become more frequent as the venture evolves.
As I wish to move forward with the business and setup the LLC in the next few weeks, I think it is important to buyout whatever claim he might have on the business.
I made 100% of the financial contributions to startup expenses until now, generated about 95% of the product design ideas, and designed and produced all the prototypes myself. All my partner has contributed is ideas relating to product design and sales/marketing strategy, during a period of about two or three weeks when we were defining what the business might look like.
My question now is how I should buy his stake in a way that he will not be able to come back in a few months, or maybe later when I want to sell the business and say he owns part of the business because of the contribution he made during the early stage of the company. I want to sign a contract with him so that this cannot happen.
I have looked into Partnership Buyout Agreements and found this fillable contract but it seems a bit too complicated for what I need.
Any suggestions on what type of contracts I should look into, what key elements to include in a buyout agreement, or simply how I should approach this situation?
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