5 Company Documents that You Need for a Startup
Starting a business is thrilling yet challenging. Many entrepreneurs look forward to seeing what was once an idea come to life. Developing a startup company is a creative procedure that entails a lot. One is the development of an online invoice generator to help interact with customers, keep track of all transactions and calculate taxable amounts.
Aside from the needed creativity, starting a new company requires you to follow some legal processes. You must have the necessary documents to have your startup up and to run it successfully, and we’ll discuss them below.
The five significant documents to have are;
1. Business plan
It’s usually the first document you create as a business owner. It takes time to develop as you need thorough research of the market, target audience, and competitors. It highlights the company’s goals, objectives, marketing strategies, etc., and the timelines to achieve them. The business plan ensures everyone is on the same page and working towards a common goal.
2. A non-disclosure agreement (NDA)
It’s vital to safeguard your essential information as a startup. Remember you want to secure a niche and thrive in the market, and any leaked information may compromise that. The NDA or confidentiality agreement ensures no employees, business partners, or freelancers share your company’s private information.
Having every company associate agree not to disclose anything helps protect the business. It also gives you an advantage over your competitors.
3. Consulting Agreement
This document highlights the relationship between your company and any other professional like a contractor. As a new company owner, chances are you’ll need external help; this is where the document comes in. It helps all parties understand what is expected from them regarding responsibilities, payment, fees, and more.
Unlike a business plan, a consulting agreement is legally binding. Both parties sign and are bound to face the law in case of breach of contract.
4. Employment agreement
It’s one of the few documents you can fully personalize to make it yours based on your business. The agreement defines the relationship between you as the employer and new employees and their roles and duties. All full-time or part-time employees need to sign this document immediately after joining your company.
In addition to the employee’s responsibilities, the employment agreement shows the company’s obligation towards the staff member. It aims to foster good relationships between all workers and the organization, and both parties can use it in court if one fails to uphold their duty.
5. Business license
A business license is a crucial document, and operating without it is illegal. These permits vary depending on the geographical location. Depending on the type of startup you want to establish, you may need one or more licenses to function.
Having proper company documents is vital for any startup. The five documents above are among many others that help establish you in the market or industry. Also, they assist in building good relationships with others and improve your performance professionally. Some are legally binding while others aren’t, but they still work for your company.