Advisor Shares Question

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
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Topic Author
jackb1117
Posts: 77
Joined: Tue Mar 19, 2019 1:47 pm

Advisor Shares Question

Post by jackb1117 »

Brilliant people of BH- I have come again for your advice.

Background:

Some former employees / colleagues of mine started a business (will be intentionally vague about the business). Over the last year or so, in addition to being a customer, I occasionally spent time advising them. Recently, they asked me to join as a formal advisor in exchange for advisor shares; after some negotiation we agreed to terms.

Question:

I understand the safest answer here is ‘consult an attorney’, but short of that is there a good resource / template for such type of agreement?

Long story short, I like to do things myself (sold & bought houses, represented myself in court, boglehead, do my own electrical, etc.). And while I believe there is upside in the aforementioned business, I have spent many years in startups and understand the failure rate. I want to balance legally covering my interests (I believe the founders are of upstanding character, but like things in writing) with burning cash on things (like lawyers for agreements) that might not pan out.

Additional context:

State of incorporation & operation (at present) is Massachusetts.

Company is incorporated as an s-corp.
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