Things To Know About Investments: Must-Have Documents Of Business Owners
Are you starting up a new business? Here are the documents needed for your start-up journey.
In our current day and age, running a business is almost considered as a necessity for us to get the financial security that we always dream. However, for those who do not have any ideas in starting up a new investment, this one is for you!
If you have enough investment money to put a small corporation, you need to know all the legal documents necessary to run your business.
One of the most important documents needed from your business is the company bylaws. Almost all states demand this from all corporations within their vicinity. Even if the state we are in does not require us to create a company bylaw, it is still best that we have written records on how our investment should run and how our business is structured. It will also be helpful down the line when it comes to internal disputes within the company, such as debating the term of a particular role within our business.
Meeting minutes are official records of the things discussed during a crucial meeting of a corporation. It keeps track of all the details, vital decisions, and actions taken by the whole company. Most states nowadays require businesses to have meeting minutes as it will not only save us from dealing with lawyers and other legal agencies of the government but will also have a valid document that holds all the records for our company.
It is vital to take note that our minutes must contain all of the essential points that transpired during a meeting. It also must have where the meeting took place, the people who were in attendance, as well as the votes, were taken if there’s any.
NDA or non-disclosure agreement is vital for any business entity. Most financial advisors agree that companies should keep private and sensitive information to themselves, out of reach from the public. Records such as the business’s credit report, financial statements, and cash flow should only be available if required by the law, but always handy within the company’s record room.
A company that runs through the effort of those who are working for them needs to have an employment agreement for each and every workforce that we have. This will lay the groundwork for setting up employee-employer obligations and will come to a mutual agreement with what to expect in their future plans.
As a side note, this document can be vital if we have employees who want to jump over the fence and have plans on leaving our business for the competitor’s company. With that in mind, we need to have a competent business lawyer and keep track of the legal records.
Memorandum of Understanding
A memorandum of understanding or MOU acts as a pathway that links our company to potential buyers, suppliers, and future business partners. It is like a formal contract that both parties agree in certain terms that will be beneficial to all parties involved.
Although it is a signed contract, it is far less powerful than a formal document. However, it will be vital as a supporting document in case there are some hiccups along the road that affects the relationship between both parties.
Within the current day and age, technology plays a crucial role in operating a business. This is true, especially if our investment is running in the backbone of the internet where everybody can access it.