29 Dec Top 4 Documents Entrepreneurs Need
Running a Business? A large part of building a successful business is making sure you have the documents you need to legally protect your interests. While every business is different, we’ve compiled a list of top 4 documents that entrepreneurs need:
1. Business Formation Documents
Entrepreneurs often start their businesses because they see a need and jump at the opportunity to fill the gap in the market. Jumping in can be a great way to test the viability of your business concept without much expenditure, but if you jump in and don’t select the right business entity you may be exposing yourself to unnecessary liability.
Generally, depending on the type of business you are running and the number of owners or partners involved, you may be able to operate your business as a:
Deciding on the right business entity type can be confusing. The easiest way to select the proper form for your business is to work with an experienced team consisting of lawyers, accountants and/or advisors. They can help you weigh concerns about liability, taxes and access to capital to make the best decision for your business.
2. Client Contracts
It would be wonderful if a phone call and a handshake were enough to form a business relationship, but despite our sincere desire to trust the people we work with, disputes happen. The best way to protect your business interests is to ensure that you have a written, signed agreement with every client you work with, before you start work. The contract should contain all of the important details regarding your business relationships including payment terms, the scope of the work and any important milestones.
3. Employment Agreements
As your business grows, you will bring on individuals to help you. Keeping your employment relationships clean is an important part of building a successful business. Whether you are utilizing traditional employees or independent contractors, you want to make sure your employment agreements are rock solid.
4. Business Plan
While a business plan isn’t a legal document, it does help you set goals for your business’ growth and allows you to obtain financing, grow or even sell your business. Business plans typically provide a roadmap for the business over the next 3 – 5 years. Because business plans contain goals and projections, they are living documents that may be modified, added to, and changed as the business grows.