As a business startup, it’s critical that you acquaint yourself with the required legal documents necessary for the smooth operation of your business.
Why do I say so?
Any form of business is by nature prone to many litigation processes. Legal documents serve to protect the interests of the business and business owners.
Here is a list of the crucial legal documents your business can’t to miss.
1. Company Bylaws
The company Bylaws lay the foundation for the operations of corporations. They provide how the company will govern itself.
Keeping a written record of your Bylaws is mandatory by most states.
However, failure to file your Bylaws with the state office does not necessarily amount to illegality.
It is professional etiquette to legislate on your corporation’s Bylaws irrespective of states stand.
2. Employment Agreement.
This form of agreement sets the obligations and expectations of the company and employees. It is vital in mitigating the internal frictions that might arise between the parties.
The preparation and eventual signing of an employment agreement by necessary parties prevent the leakage of valuable information from your company to other people.
You are advised to involve the services of an attorney in the preparation of an employment contract.
3. Business Plan.
Explicit provision of your business opportunity and its roadmap. Though may not be mandatory in your state but a must for every business.
A business plan is essential when seeking financial assistance and for other vital transactions like the sale of your business.
4. Non-Disclosure Agreement.
Your financial records and customer list, are some of the essential documents your business operates on.
This document serves to protect the exposure of company information to the outside world.
Parties required to sign an N.D.A include your business contractors, employees and any other business partner involved in your business operations.
5. Operating Agreement for LLC.
An operating agreement is an outline of the LLC’s financial and functional decisions.
Helps in defining how decisions are made, profits and losses will be shared, members rights and obligations and provisions on member withdrawal.
Despite being optional, it remains vital for the smooth operation of your company, mainly where multiple members exist.
The document becomes official and binding upon members appending their signatures
6. Meeting Minutes.
A record of all significant meeting proceedings should be kept as required by most states. Such reports keep official account of what occurred and discussed during the meeting including decisions made and actions that were taken. Necessary for dispute resolution in the event of conflicts.
Minutes should have all information about your session for reference purposes.
They should include;
• Type of meeting
• Time and place of meeting
• List of attendance
• All events that took place sale how people voted in case of an election
7. Memorandum of Understanding
M.O.U is a structure laying out terms and conditions of a project without necessarily forming a legal relationship.
An MOU lays the foundation for entering into a formal contract with your suppliers, potential partners and others related to your business.
Provides information on how your customers and other online visitors can relate to the contents of your website including sharing and commenting. Can help in the mitigation of cases arising out of errors in your content, as well as information contained in hyperlinks from your website.
This agreement is necessary for those businesses which own a site.
An online policy is a provision regulating the use of information gathered from other online users.
Business owners who reside in countries that are signatories to the Hague convention make an apostille agreement.
Is ideally a certificate authenticating the origin of public documents for recognition in another country.