Setting up a legitimate business is not an easy task. Most people think having a good idea and finances to support it is all that matters when starting a business. However, this isn’t the case. One of the most challenging parts of running a business is dealing with paperwork. If you want to be regulatory compliant, you need to file several legal papers through the right bodies. In this article, we will focus on the top four must-have legal documents for every business owner.
Navigating The Legalities Of Starting A Business
Registering and starting a legal business requires extensive research. However, you can make things like filing paperwork more accessible by opting for swyft filings with boostsuite.com. A platform like this allows you to handle the following legal documents professionally:
Operating Agreement
There are different types of operating agreements in business, depending on what you want. If you are the only business owner, you should file for a sole proprietorship or limited liability company agreement. When you are running the business with a partner, you will benefit from a partnership. In the United States, limited liability firms tend to offer the most benefits to small business owners. It usually follows less aggressive task laws and has personal liability protection.
Business Plan
A business plan isn’t just a paper with your business idea; it is an important document that you can use to source funding for your business from investors. While you can write it yourself, it may be better to outsource it to a professional and tell them what you want it to contain. It must clearly state the business name, objective, products, or services. Ensure the possible risks attached to your business and your strategies to avoid these risks are included.
Employment Paperwork
Even if you have only two or three employees, it is essential to create official employment paperwork with details about your agreement with them. Make sure the terms of your contract favor your business but are also in line with state and federal laws. The employment agreement is a legally binding document, so endeavor to consult a lawyer as you draft it. It should detail the duties, salary, benefits, work hours, and termination clause with your employees.
Non-Disclosure and Non-Compete Agreements
Apart from the regular employment agreement, it is also beneficial to draft a non-disclosure and non-compete agreement for your staff for business protection. Ask prospective employees to sign these documents if they want to work with you. A non-disclosure agreement ensures that your employees do not spill company secrets to the public or a competing firm. If they do, they will face legal ramifications. A non-compete agreement ensures that your employees do not start offering a similar product or service in direct competition with your business.
Launching Your Company
The four documents above are just a few of the many you would need to prepare to launch your company. Others include a buy/sell agreement, terms and conditions, bylaws, and a myriad of financial documents. It might seem like a daunting task but it is worth it for your business in the short and long run.
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