October 3, 2015 at 5:55 am #16679
Hi I’m looking to build an app and I know that it would make a lot of money. I have the idea, but I need to make an agreement with an engineer to make it for me. I don’t have the resources or ability to make it myself, so I know I need to make a contract for everything to be set. A friend of my suggested an equity partnership agreement. Is this the way to go? And also considering the fact that the engineer wouldn’t get paid until the application itself makes money, is a partnership the only way to go? I also don’t have the money for an attorney that would be able to consult me, I just need to be able to know that the person wouldn’t go behind my back and produce the app himself if things didn’t work out, I also need him to do a good job, can you help me?October 5, 2015 at 3:36 pm #16749
Neither myself nor FitSmallBusiness is a legal or attorney service. However, there are some general tips to keep in mind.
You can help protect a business idea in a number of ways. You can, as you suggest, create a partnership agreement where you define the rights, responsibilities, and obligations of each partner and when each partner is entitled to a portion of company profits.
It may also be helpful to have a non-disclosure agreement, non-compete agreement, and/or a patent on the app design in your name.
Attorneys can be costly, but they are a wise investment when just starting out in business. At the very least, consider signing up for a service like LegalZoom or Rocket Lawyer. While these services are not a substitute for hiring an attorney, they can connect you with attorneys at a lower cost and have templates of legal contracts and documents.
Best of luck with your app development!