Over the course of a company’s lifetime documents play a crucial role in protecting the interests of the business and business owners. Below you will read about the 10 most essential legal documents to assist you to determine what your business needs.
#1 – Company bylaws for corporations
The majority of states require corporations to hold a written record of bylaws, although you are not required to file the document with a state office. Bylaws describe how the company will manage itself. They are still a good idea as they spell out your business’ structure, individual roles, and governance issues, even though your company is incorporated in a handful of states that do not require bylaws. For instance, bylaws can help define if you need a simple majority to approve a decision or resolve a dispute on the length of a director’s term.
Check out the WA Bill of Sale here
#2 – Meeting minutes
The majority of states also require corporations to document what happens at significant meetings. They keep an official account of what was talked about or done at formal meetings, including any actions taken or decisions made. They can assist resolve a dispute about what took place or didn’t take place in a past meeting.
In order to serve as your corporation’s “institutional memory,” your minutes should be detailed enough. They should include the following details:
– the type of meeting
– time and place of meeting
– detailed attendance
– all actions were taken such as purchases, elections, etc.; as well as any votes including how everyone voted and who abstained.
#3 – Operating agreement for LLCs
An operating agreement is recommended for every LLC, specifically when there are multiple members involved, however, it is not required in most states. This document outlines the financial and functional decisions of the LLC. In case there is more than one member, it becomes all the more critical to determine how key business decisions will be made, what are the rights and obligations of members, how profits and losses will be distributed, and what is in case someone wants out of the business. The document becomes an official, binding contract once members sign it.
#4 – Non-disclosure agreement
Your business has information that should stay private, whether you realize it or not. Such information is – a customer list, ideas for a new pricing plan, or financial records. Your first line of defense to protecting this information is a Non-disclosure agreement. An NDA forms a confidential relationship between your business and business partners, contractors, and employees, who might have an access to your behind-the-scenes operations.
Fond out many useful templates here
#5 – Employment agreement
In order to minimize future disputes, this contract sets the obligations and expectations of the company and employees. Not every employment requires an agreement, but the document can be helpful if you want to prevent specific new hires from leaving your company too soon, revealing confidential information about your business, or starting to work for a competitor’s company. Before being given to an employee to sign the contract should be reviewed by an experienced employment law attorney.
#6 – Business plan
Should you ever decide to seek financing or sell your business you will require a business plan, though a business plan is not a legal document. As long as it provides clarity on your business opportunity and your roadmap to get there your business plan can be one page or a hundred pages.
#7 – Memorandum of understanding
This document falls somewhere between a handshake and a formal contract. It documents any significant conversations you have with potential partners, suppliers, and others involved in the business. A Memorandum of understanding is a great way to layout the terms of a relationship or project in writing, though this document is not legally binding.
#8 – Online terms of use
Any business with a website should include its terms of use, though, it is not required by law. These pages can restrict your liability in cases where there are misconceptions in your own content and also the information contained in any hyperlinks from your website. Your Terms should also let visitors know what they can or can’t do on your site, especially in cases where visitors can share their own content and comment on blogs.
#9 – Online privacy policy
You are legally required to post a privacy policy that outlines how this information will be used if you collect any information from your website visitors [such as email addresses] or customers.
#10 – Apostille
An apostille certifies the origin of a public document such as articles of incorporation, so they can be recognized in another country. This certificate is needed for businesses involved in international trade with other Hague Convention countries. Accordingly, apostilles are only valid in the Hague Convention member countries.
You are setting the right foundation for your business by taking the time to think about the various elements of each document because these legal documents are crucial in order to stay compliant with state requirements, they are more than just formalities.
Check out the Missouri Bill of Sale here