The checklist below provides the basic steps you should follow to start a business. Start a Business. Having a non-disclosure agreement (NDA) readily available is imperative before any business conversations take place between you and an outside party. During the formation of a new company, a best practice is to assign all relevant intellectual property to the company. The SBA offers a useful guide to funding your business. The necessary details to include in this document are the business name, name and address of the incorporator, address of the registered office, business purpose, and the total number of shares of stock that can be issued. It details four main areas: ownership, decision-making, operating procedures, and responsibilities. Bylaws should establish the internal rules of the company like how to settle disputes, select leadership and determine the rights and powers of shareholders. Top 9 Legal Documents You Need to Start Your Business 1. Business Plan. There are two types of IP assignment agreements to consider: In order to ensure that a startup operates with as little complications as possible, founders should formulate strong bylaws off the bat. Determine the appropriate legal structure of the business and file the business name with the state or county. No need to spend hours finding a lawyer, post a job and get custom quotes from experienced lawyers instantly. Please note, these are the documents required for any business that wants to register itself under the Government of India. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb. Articles of Incorporation (or Corporate Charter), 2. An IP assignment agreement could be the key legal document that determines whether your startup can attract the investments it needs in order to grow. Businesses that want fewer tax obligations and want to avoid heavier fees during early growth should consider forming a limited liability company (LLC). Many people think when you register a business, you're all set and can begin selling goods or providing services immediately. Learn about the pros and cons of corporations and limited liability companies, the two types of US business entities. A common mistake startup founders make is failing to put the proper business structure in place. A stock corporation is the appropriate type of corporation for the purpose of operating a business. Starting a business is often easier when you do it with a partner with whom you can share... 3. A business plan is a living document that serves as a roadmap for your business. Your business will need an EIN if you plan on doing any of the following: Setting up only a sole proprietorship can result in huge income tax bills and legal liabilities for which founders are personally responsible. Almost every business needs a little funding to get started. Company documents generally are required to be kept for 3 years, including: a list of all owners and addresses, copies of all formation documents, financial statements, annual reports, amendments or changes to the company. Startup Documents (also known as Startup Docs) generates and stores legal documents for early stage companies. While all options have their pros and cons, for the most part, startups with multiple shareholders should form a C corporation. It must be filed with the state in which the company intends to conduct business. If you need to form an LLC for your business, you’ll typically need to put together two documents: Articles of Organization. We?ll help you form a corporation or limited liability company online in just a few minutes. Contact information for each licensing requirement. These contracts define the rights of shareholders and the procedures by which they can utilize these rights. The documents needed for startup company includes articles of incorporation, operating agreement, tax forms and some other requirements to establish a business.3 min read. Hire the top business lawyers and save up to 60% on legal fees. 8. What to Consider When Deciding Between Forming a Sole Proprietorship or LLC, The Rules and Regulations of Being a Franchisor. Documents play an essential role in protecting the interests of the business and business owners over the course of a company’s lifetime. The documents needed for a startup company include the following items: If you're forming a corporation, you'll need to develop your articles of incorporation or corporate charter. A successful operating agreementoutlines who owns what portion of a company, the roles and responsibilities of each owner, the procedure detailing what occurs if or when an owner moves on, and how important decisions are made. Once you have an IP strategy in place, implementing and tweaking that plan is not as difficult. Most of these documents are from my growing personal collection of files that I have used over the years for my own business transactions. NDAs protect your startup by safeguarding your founder and employees’ ideas and your intellectual property. Learn about what documents are required in order to set up a US company and start a business learn more . Technology Assignment Agreements assign startups any intellectual property created before forming the company. By not filing with the Internal Revenue Service to form a distinct legal entity for their business, founders risk losing their personal savings and, in some extreme cases, their homes. The articles of incorporation are also known as a certificate of incorporation or articles of association. Go to Forms. This agreement establishes the rights, obligations, and protections for each party. Invention Assignment Agreements assign the new company IP ownership of any relevant work product created by employees after the company’s formation. 10. Step 4 - Business Structure and Registration. Developers may in certain instances retain individual IP ownership rights, or they may sell their rights in exchange for equity or cash. Related: What to Consider When Deciding Between Forming a Sole Proprietorship or LLC. It describes the relationship between company management and shareholders and the agreement regarding shareholder protection, privileges, and ownership shares.