Legal Documents Your Business Needs to Have

When running your own business, you’ll have tons of documents sitting in your office. However, some documents are more important than others. In fact, there are some of these your business simply needs to have. This is the case because some documents are there to protect your business and obtaining them as soon as possible is always recommended. So if you’re planning to enter the world of business and you’re wondering what these are, make sure you read on.

Confidentiality agreement

If you’re starting out, you probably already have the idea of what you’re going to do. However, if you plan to talk about it with your family and friends, having confidentiality agreements that’ll help you make sure your idea stays safe is always recommended. Once your business idea is out there, there’s no way to draw it back in, and that’s why you’ll want to have people sign a confidentiality agreement before you unveil any information about your new business to them. The same rule applies when working with a business partner. No matter how much you trust them, having them oblige to use the information you’ve given them only for a specific purpose is a good idea. By having them sign the confidentiality agreement, you’ll be rest assured know they won’t unveil that information to a third party.

Payment-related documents

You probably already know that the key to running a profitable business is maintaining a good cash flow. And in order to make sure there’s always cash in your business, you’re going to need a certain set of documents. First of all, you’ll need purchase orders which are the documents you’ll be using once you start engaging customers. Besides this, you’ll need to issue your invoices on time besides keeping track of every document related to the payments your company receives. This is an extremely important thing to do since you’ll need these documents when trying to collect debt. If some of your customers are late with their payments, you’ll to need a first payment reminder letter. This document should prompt them to make their payment this allowing you to maintain a healthy cash flow.

Shareholder agreement or partnership agreement

If there are multiple shareholders in your company, you’ll also have to get a shareholder agreement. This legal document states exactly who the shareholders are, what they’re obliged to do and what their rights, as shareholders, are. Therefore, a shareholder agreement sets the rules on how your company is going to be operated and ensures that all the shareholders cooperate. Another thing determined by the shareholder agreement is what happens should one or more shareholders leave the company. This ensures that there’s continuity even when a shareholder decides to leave. If you’re operating as a partnership, you’re going to need a partnership agreement instead. This document will determine the  responsibilities of every party and the way profits are supposed to be shared. By having a partnership agreement, you’ll be able to press legal charges against your business partners in case they turn out to be a fraud.

Website-related documents

Every modern business needs a well-designed website in order to survive. Not only this, but you’ll probably need an online store if you plan to reach a wide audience. And since e-commerce has grown quite a lot, legislation governing online businesses has changed. Therefore, you now have to clarify how you’re going to use any personal data your visitors provide you with. This means you’ll need to use a website privacy policy. This is an important thing to do, since it’ll help you avoid any potential disputes related to data your visitors have provided you with. On top of this, you’ll also need a website’s terms of use, which are going to specify that the user agrees to your terms of use. Usually, they’ll do this by ticking a box that appears on the screen once they enter your website.

In most of the cases, you won’t have to create these documents yourself. There are plenty of companies online that can provide you with any document your business needs. Therefore, once you start getting your business off the ground, one of the first things you’ll have to do is look for these documents online and obtain them.

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Tabitha Jean Naylor