Pre-Incorporation Agreement

Document Description:

The Pre-Incorporation Agreement is a written and signed agreement used to set out the financial and organizational structure of a new corporation. Although this document is not legally required, it is invaluable in setting out key ownership issues and terms related to the incorporation process.

Most importantly, this agreement focuses on the percentage split of share ownership and commitments of the shareholders. In signing such a document, all parties involved are aware of what they need to invest and how much ownership they will get in return for their investment. This is an extremely valuable template to set out the terms that will be agreed upon in the Articles of Incorporation.