MTT: Dividing Ownership in a Group Project
Bruce Warila has posted an informative entry on Music Think Tank that details steps to divide ownership before launching a corporation. He delves into different tasks that groups should do to divide ownership and build a motivated organization. He recommends that groups need three key things to start quickly and inexpensively: an ownership earn-in spreadsheet, a binding letter of intent, and an attorney. Mr. Warila encourages an interesting concept of plastic ownership.
The documents in his article are mostly for smaller projects, but anyone that wants to launch a corporation should read these tips. Here's an excerpt:
"Everyone involved desires to protect their investment (time, money, art, etc.) and to preserve their ownership rights until the day arrives when the group decides to turn the project into a real company. The following is a list of people involved in the (fictional) project and a brief description of the assets that each person proposes to contribute to the project:" (Read on.)
Written by Natalie, our current MTT intern and CM. Announcement pending.
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