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A founders agreement is a crucial legal contract for new business partnerships, outlining the roles, rights, and responsibilities of each co-founder. It can exist as a standalone document or be part of corporate bylaws, an LLC operating agreement, or a partnership agreement. This agreement is important as it safeguards the interests of all founders and aims to prevent conflicts. In case a dispute arises, the founders agreement offers a structured approach for resolution by clearly defining each owner's role in the business. Establishing a solid foundation through this agreement is essential for successful collaboration among co-founders.
