To get a better background on my situation:

http://www.webhostingtalk.com/showthread.php?p=5092440

So what i would like to know: should i hold out until i see a partnership agreement (which could take weeks or months) or start helping out now and go with it and figure it out later.

On one hand, i really want to partner up and start helping with the work. Its a great opportunity for myself with no financial commitment at this point in time. What am i afraid of is that im going to put in all this time and effort and in 2 months from now im going to be at a point where a) im not going to be happy with the agreement or B) im going to get screwed over

My friends partners (two others) already have verbal agreements but nothing on paper. I would like to have a agreement to protect myself and my own interests.

What do you guys think?

I really wouldnt commence doing to much without the legal certainty of a partnership agreement. The reality is that a wink and a handshake really arnt enough these days and as much as you like the guy...get it on paper.

Think of a partnership agreement as something that spells out what you expect from each other from day 1...rather than an annoyingly strict legal document. If you both know what to expect from each other then its likely the partnership will start out on solid ground.

If you bring it up...sell it as the above rather than whether you 'trust' him or not. There really isnt any room for 'trust' without the partnership docs...as this is what gives you your legal standing.

If hes not willing to enter into an agreement then I would suggest asking yourself why and would instantly walk away.

Anyway, thats my 2 cents

1) it should NOT take weeks to come to an agreement on the terms.

2) if you keep holding out, there will be 2 or 3 more 'verbal' investors to deal with. each of them taking a piece of the pie.

3) definitely get 'something' in writing. a verbal, amoungst 'friends' is just as good, if you have a good 3rd party witness. maybe record it too.

4) if you 'help out' now and don't like the terms (next week) then you lost 1 week of time. Make the terms work for all party's and get to it.

No offense, but lose the 'negative i'm going to get screwed attitude' and go make some money :)

If it doesn't work out, then so be it. take your 'experience' and apply it another day.

Just remember, some of the greastest deals of all time, were done on napkins over cocktails.

Working without a contract is just stupid unless it's for your Mom.

:)

If you are serious about protecting your interest and business, then you should not work without a contract. Your "partner" should feel the same way, otherwise they are just as stupid.

Unless its on paper, it is no agreement. They can anytime back out of their verbal agreement anytime if it is not on paper.

hey guys. thanks for the advice.

in lieu of a physical agreement, im going to start helping out now and work my way on negotiating an acceptable partnership agreement in parallel. best thing that can happen is that his blows up and becomes the most awesome thing ever, worst case i go back and do my own thing and let them go on my merry way.

just fyi, getting my shareholders agreement done up took 2 days and cost only a few hundred bucks.

Wish I had one 8 years ago when I started my hosting company, would have saved me a lot of cash and effort last year.