Pre-Incorporation Agreements

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Pre-Incorporation Agreements provide a means to specify the terms of the agreement between the persons forming a corporation before you incorporate to make everything clear. Sample previews are available for each state.

Why You Need a Pre-Incorporation Agreement


A pre-incorporation agreement is essential to establish the management, control, and operation of the business during the pre-incorporation process. A pre-incorporation agreement can avoid future disputes by having an agreement on important terms at the beginning of incorporation, before later efforts complicate matters. Often, shareholders agreements and confidentiality agreements are created at the same time. US Legal Forms offers form packages that include a pre-incorporation agreement, shareholder agreements, and confidentiality agreements at a substantial discount, as well as incorporation forms and agreement forms that are available separately.

What is a Pre-Incorporation Agreement?

A pre-incorporation agreement is one of the legal forms used at the outset of the incorporation process. By using a pre-incorporation agreement, you are ensuring that everyone involved in forming the business has a clear understanding of the plans, thereby minimizing the chance for future disputes and litigation. A date for completing the formation of a corporation and provisions for handling the costs and expenses of incorporation are dealt with in the pre-incorporation forms. The forms lay out the basic organization of the business, its business name, business purpose, agreed upon directors and officers and their salaries, capital contributions, etc. The following are some of the basic terms included in pre-incorporation agreements:

  • The corporate name that will be registered for the corporation.
  • A statement of business purpose for forming a corporation.
  • A date for completion of corporate formation.
  • The address of the corporate headquarters that will be used in the articles of incorporation.
  • Any chosen officers or directors.
  • Capital contributions by initial shareholders.
  • Terms for establishment of a corporate bank account and authority for signing corporate checks.
  • Authority for carrying out business operations such as signing contracts and borrowing on behalf of the corporation.
  • Reimbursement of shareholder fees and expenses for handling incorporation and corporate matters.
  • Ratification of transactions over certain dollar amounts.

Other Important Business Forms Included in the Package

Included with the pre-incorporation agreement are a shareholders agreement and confidentiality agreement. The following is an explanation of the importance of the shareholders' agreement and confidentiality agreement:

  • Shareholder Agreements - This form is used to establish what happens upon the transfer of a shareholder's shares upon sale, death, bankruptcy, etc. There are provisions in the shareholders agreement for the corporation to have an option to purchase shares at an agreed upon value. A shareholders' agreement is used to prevent corporate control from being transferred to undesired shareholders and ensure smooth transition of ownership if a member of the business leaves or dies.
  • Confidentiality Agreement - The confidentiality agreement protects corporate interests by preventing disclosure of customer lists, trade secrets, processes, design, sales, product and marketing information, and whatever else your company agrees to protect from disclosure. Confidentiality agreements forms are used to ensure confidentiality of valuable corporate information and prevent it from being used to advantage your competition or damage the goodwill or profitability of the corporation.


Pre-incorporation agreement packages, with shareholders agreements and confidentiality agreement templates included, are the best way to ensure that future disputes and litigation are avoided during the incorporation process and beyond. The form packages offered by US Legal Forms are professionally drafted by attorneys and our business form templates can be modified in Word to suit your needs if desired.

Pre-Incorporation FAQs

Why is a pre-incorporation agreement needed?

Pre-incorporation contracts are essential to preventing future litigation and disputes by have a clear, written understanding of the terms for forming a corporation. The document lays out how costs of incorporation will be handled, the basic structure of the business organization, the corporate name and address, the business purposes, appointed upon directors and officers and their compensation, initial capital contributions, and authority for banking and financial transactions during the formation of a corporation. Other terms are included, such as when corporate formation is to be completed and when shareholders need to ratify large transactions.

What forms are included in the pre-incorporation package?

A confidentiality agreement and shareholders agreement are also included with the pre-incorporation agreement package. A shareholders' agreement covers how to handle the transfer of a shareholder's stock shares upon sale, death, bankruptcy, etc. The shareholders agreement contains an option for the corporation to buy the shares at a predetermined value. A shareholders' agreement is used to provide control over ownership and management of the company if a shareholder of the company leaves or dies.

A confidentiality agreement is used to protect valuable corporate assets and information by preventing disclosure of customer lists, design and trade secrets, product and marketing information, and anything else that your requires protection. Confidentiality agreements forms enable you to preserve the privacy of sensitive corporate information that the competition could use to gain an advantage.

Confidentiality and shareholders agreements are vital documents to protect corporate interests. USLegalforms offers shareholders agreement and confidentiality form packages, as well as other form templates for after you form a corporation.

Do I need an attorney to form a corporation?

US Legal Forms offers a pre-incorporation package and incorporation forms that may be completed and filed according to the included instructions. This low cost alternative to hiring an attorney allows you to form a corporation by downloading our state-specific incorporation package to file the legal forms required according to the state's incorporation process.

What form of agreement is used to start a corporation?

The pre-incorporation contract is the document that sets the framework for starting a corporation. The articles of incorporation is the document that creates the corporate entity under state corporate law when filed with the secretary of state. Both types of agreement forms should be used when forming a corporation. US Legal Forms offers form templates and packages for all of your corporate needs.

Is formation of a company online legal?

US Legal Forms offers professionally drafted pre-incorporation contracts and other form packages that comply with the laws on formation of a corporation of each state. A pre-incorporation agreement and incorporation package are legally enforceable by filling out the legal form and following any applicable filing instructions.

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Pre-Incorporation Agreement Information

These packages contain a pre-incorporation agreement for the formers of a corporation to sign agreeing on how the corporate will be operated, who will be elected as officers and directors, salaries and many other corporate matters.

A pre-incorporation agreement helps avoid disagreements in the future and can act as the roadmap for how the Corportion will be operated, as well as the rights and responsibilities of the shareholders of the corporation.