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Economic interest and ownership

Defining current ownership usually increases the risk that the agreement may not be enforceable unless it is registered as a partnership. At this stage, parties can choose one of the following options:
  • They can register the co-founder’s agreement with the Registrar of Firms in the state where the business is situated to ensure it is enforceable. In this situation they can define economic interest held by each co-founder.
  • Alternately they may simply specify the share that the co-founders will have in the future if they agree to adopt a formal structure for the business (depending on the results of the pilot). 

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