Launching a startup is exciting but skipping over the legal basics can lead to serious issues down the line. Whether you’re building a tech company, an e-commerce brand, or a consulting firm, having the right legal documents in place protects your company’s assets, clarifies founder relationships, and sets a solid foundation for fundraising and growth. Below are five essential legal templates that every founder must prepare early in their journey.
When you incorporate a startup, you need a clear agreement outlining how shares are distributed among the founding team. That’s what the FSPA is for. It outlines who gets how many shares, at what price, and under what terms. There are two common ways to structure this:
In most early-stage startups, founders don’t pay cash for their shares. Instead, they typically contribute intellectual property under a Proprietary Information and Invention Assignment Agreement (PIIAA).
Why it matters:
A clear FSPA keeps your cap table clean, prevents disputes between founders, and is one of the first documents any investor will ask to review.
Startups often begin before the company is formally incorporated. Founders write code, design branding, or build early versions of the product. Unless there’s a PIIAA, the company may not legally own those assets. This agreement assigns all intellectual property related to the project, whether already created or developed in the future, to the company.
What it typically includes:
Why it matters:
Without this document, your startup might not own its most valuable assets such as code, designs, or product. That’s a major red flag for investors, acquirers, and legal due diligence.
At some point, your company will bring in outside help, such as freelancers, consultants, or agencies. A Services Agreement is how you set expectations and protect your business. It defines the scope of services, payment terms, deadlines, and most importantly, ensures that any work created during the engagement is owned by the company (not the contractor).
Core elements include:
Why it matters:
You don’t want to chase contractors later for ownership rights or be surprised by hidden liabilities. This document keeps your business relationships professional and your IP protected.
Before sharing product ideas, business models, or code with anyone outside your core team, you must have NDAs in place. This ensures both parties agree to keep sensitive information confidential and only use it for the intended purpose.
Use cases:
Even if the person is not a competitor today, circumstances change. A well-drafted NDA protects your startup from unnecessary risk.
Why it matters:
You can’t un-share sensitive information. An NDA is a simple but powerful way to prevent leaks, misunderstandings, and misuse of your early-stage ideas.
An NCA prevents a former employee, advisor, or founder from launching or joining a competing business right after leaving your company.
It usually includes:
❗Important note: Not all states treat NCAs the same way. For example, California generally doesn’t enforce them, while states like Florida and Texas often do as long as they’re reasonable.
Why it matters:
If someone leaves your team, you want to ensure they don’t immediately launch a competing product with your ideas and team. NCAs help protect your long-term strategy if used properly.
You can generate legally sound templates in just a few clicks at Skala, a one-stop shop for startups and builders. Simply fill out a brief questionnaire, receive customized, investor-ready legal documents in seconds, and send them for signature right on the spot.
Having these legal essentials in place isn’t just about staying compliant — it shows that you’re building a serious, structured, and fundable company.