Starting and running a business is an exciting yet daunting experience. Ask any business owner and they’ll tell you that there is never enough time to get everything done. A lot of it is spent juggling clients, family, and employees. Unfortunately, the legal paperwork gets forgotten and this can lead to legal issues later on. To be on the safe side, here are 7 important legal documents for your business that should be sorted out.
Do you run a corporation? Well, most states would require you to keep a copy of your company’s bylaws. Bylaws dictate how corporations should be governed. In addition to this, they spell out individual role os staff members, governance issues and so much more.
Meeting minutes are in essence your business’ record of decision-making at shareholder or board meetings. Unknown to many people, minutes are a government requirement. ou can think of them as your company’s ‘institutional memory’.
An operating agreement for LLCs
This is recommended for all Limited Liability Companies (LLCs). The legal document gives an outline of the entity’s functional and financial decisions like profit sharing.
A non-disclosure agreement
All businesses have info that should remain private at all cost. Information like ideas for product pricing, a customer list, and financial records must be secured from unauthorized access. A non-disclosure agreement takes care of this.
An employment agreement
This legal document sets the expectations and obligations of your company in a bid to minimize possible conflicts. With this document, you can prevent your employees from disclosing company information or worse still, work for your competitors.
A business plan
The business plan may not pass as legal document as such but it’s a crucial document nonetheless. Nothing outlines your roadmap to success better than your business plan.
An MOU with suppliers/clients
An MOU falls in between a formal document and a ‘hand-shake’. They are great for laying out terms with the third party.