There are various legal documents that every entrepreneur must have before starting their businesses. These documents protect the entrepreneur from future disputes and ensure that the company runs effectively for an extended period. Unfortunately, many startup founders lack a solid legal structure for those documents, hence their failure.
In this guide, we have compiled a comprehensive list of the essential documents that every business should have. If you are planning to start a new business, read on to know what you will need to protect your enterprise legally.
Business plan
A business plan outlines the goals of the entrepreneur and the ways of achieving them. It provides a clear structure of who will be managing your business, what marketing strategies you will use, the products you will be offering, and your target market too.
Other than being a legal document in many states, a well-structured business plan can also help you attract investors, or even, get sound financial deals. Find a good business plan template and outline your business plan to stay compliant with the law.
Employment agreement
An employment legal agreement outlines the expectations and obligations of each employee. The document covers the key areas such as the probation period, the salary, annual leave, working hours, and so on.
You might not need an employment agreement on every hire you make, but the document can help you have a better relationship with your workers. Before you hire, keep your business contract templates in handy for the employment agreement signing.
Confidentiality agreement
As an aspiring entrepreneur, the chances are high that you will share your business idea with a few of your friends or business partner. In such cases, you will need a confidentiality agreement, which is also known as the non-disclosure agreement. This document bounds the third parties legally from disclosing the private information of your business.
The agreement also gives you the right to sue any person who shares your private information against your expectations. Before you share your business idea or secrets, get your business contract templates ready for the confidentiality agreement.
Shareholders agreement
As the name suggests, a shareholders agreement outlines the relationship you have with the shareholders. The document also mentions their rights and obligations in the company. A well-crafted shareholders agreement should define how you will share the decision-making methods as well as the profits and losses.
Without it, you can quickly get into disputes with your shareholders and damage your business reputation. Be sure to prepare business contract templates for your shareholders to protect your business name.
Terms and conditions agreement
Terms and condition service document outlines the terms that you will observe as you interact with your service providers. Also, the document shows the specification of the expected products and services, mode of delivery, and payment procedures.
The document gives you the full right to sue your service providers on any occasion of a dispute. The terms and conditions document is a significant point of reference in business, and you should, therefore, get tailor-made advice before you engage your service providers.
Website privacy policy agreement
The e-commerce industry has been rapidly growing, and this has made it necessary to have stricter laws. The website privacy policy, for instance, clarifies the name and the contact details that users will need providers when using the website.
The agreement outlines the relationship of the internet users with website providers. As such, you can rely on it to handle any future cases related to data protection or privacy infringement.
Bottom line
Both small and large businesses need the above business documents to cover their legal entities. So, register your new business as per your state laws, and initiate your search for the legal documents. Do not hesitate to consult a professional whenever you need help.
