i am an artist being offered to work together with someone. they own a business of which i would get 10% they get 90%. i would create art for the business and operate day to day tasks. As my initial capital contribution i would provide art equaling to 10% of the business. later, the more art I provide, the more my % share will grow. i do not want to have liability (unless its for my own actions) and do not want to pay losses. preferably be a shareholder
what type of agreement do i need to make?
It is possible to structure your matter either as a contract or as "equity". I prefer contract to equity. You need to remember issues such as who owns the IP you create (work made for hire doctrine)), you ability to "audit" the books to make sure you are getting your 10%,and other issues. You should figure 2 to 3 hours of attorney work including an interview, a draft of the document, and finalization of the document. Could be a bit more but probably not less.
The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also avvo.com terms and conditions item 9, incorporated as if it was reprinted here.
There is no one size fits all contract. You need to sit down with a business lawyer and draft up a contract based on the terms that you wish to have included. As the business owner if they have a written contract that they have used before and that could be the starting point for you to review and modify in consultation with your lawyer. Use Avvo's find a lawyer feature to start your search for an attorney. Best wishes.
Answers to questions are for general purposes only and do not establish an attorney-client relationship.
You should hire an attorney to write the contract for you. These types of contracts can be tricky and if you are not paid correctly or if there is a misunderstanding, you will regret not having a contract that specifies ALL the terms as well as what happens if one party defaults, etc. Find contact info on Avvo.com. Your attorneys' fee will be a tax write-off for your business.
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