Tuesday, August 9

Essential Legal Documents You Need for Your Small Business

Entrepreneurs from Mississauga to Montreal put all of their effort and attention into growing a business, making it important to protect what has been built. If you don’t have the right standard legal documents for your business, you could be leaving yourself open for litigation that could cost you everything.

As a business owner, you are an expert in your field but that doesn’t mean that you know how to protect yourself and your business from a legal standpoint. It’s crucial that you have the minimum of legal documents prepared for your company to make sure that you are protected from lawsuits.

photo credit: Pixabay

You can work with business lawyers in Mississauga, On, or print off some legal templates that are available online to protect your interests at a minimum. Let’s take a closer look at a few of the essential legal documents that you need for your small business.

Owner’s Agreement

To help solidify trust and cooperation in your business, it’s important to have an owner’s agreement in place. With the right amendments in place, you minimize disagreements and can work towards common goals. Your ownership agreement should clearly outline the roles and responsibilities of each of the partners including decision-making power. Your agreement should include a specified breakdown of your equity ownership agreement, and assignment of your intellectual property to the business and not the partners.

Independent Contractor Agreement

When operating your small business, it can be cost-effective to bring in independent contractors to do certain work. Your independent contractor agreement should be in place to specifically designate that your workers are responsible for paying their own taxes and they are not part of your payroll or in your direct employment.

Vendor Agreement

One of the most important aspects of a successful business is ensuring that you can supply your products quickly to customers. A vendor agreement for your suppliers will provide the terms and conditions under which they will deliver the goods that you need on time.

Employee agreement

Non-Disclosure Agreement

Before you allow any vendors, contractors, or employees into the heart of your business operations, you need to have them sign a non-disclosure agreement. This ensures that outsiders will not be able to disclose any confidential information about your business. Your agreement should clearly outline what is considered to be confidential information, specific information formats, how confidential information should be handled, and a statute of limitations.

Company Bylaws

ovinces and states require that companies create a set of governing bylaws. Within your bylaws, you should clearly outline how your business will be structured, dispute resolution, hiring practices, and powers of shareholders.

Meeting Minutes

While it may not be legally mandated in your area to keep a copy of any executive meeting minutes, it’s still a good idea to keep this type of documentation. Meeting minutes that record everything that is said in major meetings is an excellent company resource for information to resolve potential disputes.

If you are starting a new business, it’s recommended that you have these essential legal documents ready to ensure that you and your venture are protected.



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