What are the options and pitfalls involved with collaborating on a new company?

The main asset you have to offer is your idea, plus whatever experience, contacts, etc. that you start with and the time, capital and effort you're willing to contribute. This would probably be a joint venture, and you need a written agreement with each venturer to allocate their respective rights and responsibilities.

You also need to make each person you contact agree to a non-disclosure agreement before you disclose your idea.

Obviously starting a new business is a daunting task, and you're best off consulting a lawyer before you do so.

Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship.

I agree with Pamela on the critcal need for a nondisclosure agreement prior to any disclosures. However, I always advise my clients in such circumstances that contracts are like fences. Good fences make good neighbors, but they don't protect you from the neighbor from hell. Similarly, good contracts make good business partners, but they don't protect you from the bad business partner. Thus, the most important item for you to do prior to entering into any business relationship, especially with completely unknown persons found on the web, is to perform sufficient due diligence on each candidate to become comfortable that you can trust this person before you enter into any contracts with them.

I do not know all the facts of your case, and I do not legally represent you. Although I strive to make sure the information I provide is generally accurate and useful, you should promptly consult a lawyer who can learn the details of your case more completely, to ensure that the information I provide, and your interpretation of it, is appropriate to your particular situation.

If you would like to discuss this matter further in a more private forum, please feel free to contact me directly at the email address provided by AVVO or through my firm’s website located at BealBusinessLaw.com.

Tom -

The first two answers to your question were on-target. I have provided, below, links to resources that you might find helpful.

The first is a post about sample unilateral and mutual confidentiality agreements.

The second discusses choosing among a corporation and an LLC (the most likely choices) for your business's structure.

Disclaimer: This post does not constitute legal advice and does not establish an attorney-client relationship.

Dana