The right legal documents is essential to your business success as they help you scale through many problems and also comply with the laws of the state.
There are many legal documents important for every business but here are five (5) crucial ones not to be joked with.
1. Business Registration and License
Registration of your business is the first step in starting a business. It tells about the nature or structure in which the business is to be executed (sole proprietorship, partnership, limited liability company, e.t.c).
Business license is a document that reveals the government of a country approval's for you to run your business.
2. Business plan
Every business needs funding to survive. This plan is created to attract investments for the business. It shows the problems to be solved, mission and vision. Business plans mainly is structured to convince investors to fund your business.
3. Employment agreement
Employment agreement is a document that helps to clarify the roles and responsibilities of both employees and the employer. It's a contract that spells out what's expected of every worker so as to avoid misunderstanding, abuse and conflicts in the future.
4. Employee handbook
Whether your business is a large one or small one, having a properly written handbook containing policies and guidelines would be beneficial to your employees as it helps communicate their rights to them.
They also become aware of safety guidelines and federal registration so as to prevent accident and penalties respectively.
5. Non disclosure agreement
A non disclosure agreement helps protect your trade secrets from getting to your competitors. The intellectual property of a company is needed to be protected in order to keep the business competitive advantage, this agreement prohibit the employees from revealing confidential information to the public.