So it's time for a new co-founder?


Hey there,

Before we dive into this month’s legal tips and most-asked questions, we have an announcement to make.

You see, something we hosted last month got founders talking.

The DMs, the feedback, the requests... they didn’t stop.

So we’re making it official.

SuLe is proud to present our very own  Webinar Series 

One session every month, with clear, practical advice for founders, business owners and anyone who wants to learn the legal essentials (without the boring textbook lingo).

We’ll cover everything from must-know tips and red flags, to guides and templates that protect your business.

Stay in the loop by subscribing to SuLe’s Luma calendar. We’ve got a whole line-up ready for you (and the next one is tomorrow!). 🙌

Now let’s dive into this month’s newsletter…

1. Our Most Asked Question in June:
I'm hiring my first employees / bringing on co-founders. What should I be thinking about? 🤔

We love this question, and it’s a big milestone for any founder! Whether you're hiring your first employee or formalising a relationship with a co-founder, both come with legal responsibilities worth getting right from the outset.

Pst: Our webinar tomorrow (30 July) is all about this topic: ‘How To Build Your Team The Right Way.’ We’re diving into everything from hiring your first employee to navigating equity, culture and co-founder dynamics. Join us! 

🤝 1. Hiring Your First Employee

Before you make your first hire, there are a few important steps to tick off:

  1. Financial readiness: Make sure you can comfortably afford the hire — not just their salary, but also:

    1. National Minimum Wage

    2. National Insurance

    3. Pension contributions

    4. Sick pay / parental leave

    5. We typically recommend also budgeting at least 3 months’ salary in reserve

  2. Legal compliance: Confirm that your employee has the right to work in the UK, and consider any necessary background checks (e.g. DBS, if applicable).

  3. Registration with HMRC: You’ll need to register as an employer and set up PAYE before you start paying staff.

  4. Insurance: Employers' Liability insurance is legally required; you’ll need it in place from day one.

  5. Workplace responsibilities: Ensure your workspace is safe, accessible and inclusive. Fire safety, data protection, and non-discrimination all apply from the start.

  6. Payroll & pensions: Choose how you’ll manage payroll (software or external provider), and assess whether you need to auto-enrol employees in a pension scheme.

  7. Employment documentation: You must provide a written statement of employment outlining key terms if the job lasts more than one month.

🤝 2. Bringing On a Co-Founder

If you're starting a business with someone else or formalising an existing partnership, a Founders' Agreement is essential. It will:

  • Clarify roles, equity and decision-making

  • Prevent disputes before they arise

  • Give investors confidence in your governance

  • Protect IP and business assets

  • Provide clear exit terms if someone leaves


A good Founders' Agreement should cover:

  • Roles and responsibilities: What is each person responsible for? What authority do they have?

  • Equity and vesting: Who owns what, and how is that equity earned over time?

  • Decision-making: How will decisions be made? What happens in a deadlock?

  • IP ownership: Confirm that all IP created for the business stays with the company.

  • Confidentiality & non-compete clauses: To protect your business in and after the relationship.

  • Exit strategy: What happens if a founder leaves, voluntarily or otherwise?

These early decisions have long-term implications for your team, your business and your investors. Getting the legal groundwork right now can save you from much harder (and more expensive) problems down the line.

If you’d like help reviewing your employment docs or founder’s agreement, feel free to reply to this email or click below to schedule a free, 15-minute consultation with one of our lawyers.

2. Noteworthy News:
The internet just got a little bit safer for children in the UK. ⛑️

As of 25 July 2025, a new part of the Online Safety Act 2023 has officially come into effect. It requires platforms that children might access to complete a Children’s Risk Assessment.

Such platforms include:

🧑‍🧑‍🧒‍🧒 Social media platforms (including small or early-stage ones)
💻 Online forums
📈 Marketplaces
📩 Messaging apps
👾 Games
🤝 Collaborative tools
🔍 Any service with search or interaction functionality

Importantly, this applies even if your company is not UK-based, as long as your service is accessible to UK users.

Why should this matter to you? 

If your service falls under the scope of the Act and you haven’t completed these steps yet, you must complete the assessment.

The regulator (Ofcom) will expect services to have a clear and up-to-date record of how they’ve assessed risk to children and what measures they’ve implemented to address it.

We’d recommend setting aside time to:

1. Review Ofcom’s guidance (especially if your service has UK users).
2. Revisit any prior assumptions about whether children use your service.
3. Ensure your assessments and safety measures are documented.

3. Legal Reminder Of The Month:
Want something a little better at retention than an employee of the month program?
Implement an Employee Share Scheme. 👩‍💻

If you’re planning to scale or bring in key hires, an Employee Share Scheme (ESS) could be one of the most powerful tools in your toolkit.

These schemes allow employees to share in the future growth of your business, aligning their success with yours. And the impact? Lower turnover, stronger engagement and a team that thinks like owners.

What are your options?

  • 🚀 EMI (Enterprise Management Incentives): tax-advantaged and founder-friendly, ideal for most eligible startups.

  • 📊 CSOPs, SIPs, SAYE: other HMRC-approved options with varying requirements and benefits.

  • 📋 Unapproved schemes: more flexible, still effective, especially for those who don’t qualify for HMRC-approved plans.

A well-designed ESS can boost productivity, improve retention, and even support your fundraising journey.

4. Funding & Award Opportunities 💸

💰 Immerse Catalyst Accelerator: Immerse Catalyst is an intensive 8-week accelerator, designed for founders as they seek to scale their businesses. You’ll gain access to expert-led workshops, personalised coaching to set and smash your business goals, and a powerful peer community of like-minded entrepreneurs and alumni who’ve been in your shoes. Applications close 20 August.

💰 BE100 competition: The BE100 competition is designed to fast-track innovation in climate health by inviting 1,000+ businesses to apply for the chance to pitch their ideas to thousands of mission-aligned investors at Blue Earth Summit 2025 (15-17 Oct). Each year, they look for the three most innovative business solutions across three categories: Seed, Growth and Scale. Applications close 5 September.

💰 The King's Awards for Enterprise: The King’s Awards for Enterprise are for outstanding achievement by UK businesses in the categories of innovation, international trade, sustainable development and promoting opportunity through social mobility. Applications close 9 September.

5. Upcoming Entrepreneurial Events 🤓

30 July: How To Build Your Team The Right Way with SuLe & FounderCatalyst – ​​From hiring your first employee to navigating equity, culture, and co-founder dynamics, in this webinar Patricia and Sam will unpack the real-world lessons, legal know-how, and people-first tactics that help startups thrive, not just survive.

​Whether you’re just forming your founding team or gearing up for your next round of hires, this session will help you avoid the common mistakes and build with confidence.

8 August: Charity Padel Tournament: Founders, Investors, Changemakers – This padel tournament will raise money for the Prince's Trust. It is a great chance to connect with some of the most influential and interesting people in the ecosystem in London and Europe, in a fun and enjoyable setting.

12 August: Product Talk with Chris Pedregal  – Head to Granola's offices for this event with Chris Pedregral (CEO and Co-Founder of.... Granola). Come hear Chris talk about how he thinks about building AI native products and has built Granola so far.

21 August: How to Protect Your Company’s Most Valuable Asset – Your IP with SuLe – ​Based on SuLe’s popular blog, this webinar breaks down the basics (and the blind spots) around:

Trademarks, patents, and copyright - what they mean and when you need them
How to identify what IP you actually own (or should)
Common mistakes founders make when launching a brand or product
Easy wins you can act on now to avoid future legal messes

And that’s all for this month! Build boldly, hydrate often and don’t forget to hit ‘save.’ 🫡

– The SuLe Team