The Sample Agreement to Form Business Entity is available free to download, customize and print for your new small business.
The Agreement to Form Business Entity (sample) contract below can be used when two or more people decide to form a business entity together. There are times when the parties might not follow through on their promises and will fail to contribute anything towards the costs of forming the business entity or even fail to contribute any capital to the business entity. The business probably will not be able to continue without the sharing of the costs or the additional capital that was expected.
The Agreement to Form Business Entity (Sample) below includes:
- Company Name
- Title – Agreement to Form Business Entity
- Sample Contract – The undersigned parties hereby agree to form a [specify type of business entity], in the state of [state where your business is located] primarily for the following purposes: [state the business purposes].
- The principal place of business is planned to be in [state principal place of business].
- Upon formation of said entity, each of the parties intends to make the following amount and type of contribution, in exchange for the type of interest that is identified:
- Name Type and Value of Contribution. Specify Equity [Voting Capital or Nonvoting Capital] Interest or Debt Interest; and a description of the assets or services to be contributed, and the agreed value, for each type of interest: __________________________________________ (There are four of these in the contract.)
- The costs of forming said entity, including, but not limited to, attorney’s fees, fees paid to the state of formation, and initial foreign registration and fictitious name fees, shall be apportioned among the undersigned parties in the following manner, irrespective as to whether the entity is actually formed:
- Each of the parties agrees to pay his proportional share of said costs. Each party shall be entitled to be reimbursed by the business entity for such payment, after the entity is formed.
- Additional understandings among the parties: (Describe)
- Each of the parties acknowledges that the parties are relying on the reciprocal promises made herein in deciding to form the above-described business entity. A party who breaches this agreement shall be liable for the costs the non-breaching parties incur in enforcing this Agreement, including, but not limited to, attorney’s fees and court costs, in addition to any other form of damages.
- Signatures and Dates – Printed Names, Signatures and Date Signed from all parties involved
Click on the link to download the sample agreement to form a business entity: