Do you know which documents your new business needs?
As a new business owner there will no doubt be some uncertainty with regards to which legal documents you may require. Depending on whether you are a sole trader, partnership or company and what product/service you are providing, some documents will be needed more than others. I have outlined below the basic documents that you should think about when starting up.
Do you have co-founders?
If yes, the document you should really be considering depends on the structure of the business. Where a partnership has been formed the document would be a partnership agreement and for a company a shareholder’s agreement.
These are private agreements which detail, for example, how decisions are to be made and how the business should be valued if sold or one of the owners wants to leave. If you have formed a company there is a requirement for articles of association, which is a public document that details how the company must be run and administered.
As well as owning the company you will work for it (unless you are a non-executive director), so a director’s service agreement (employment contract) will be needed. This document will contain additional clauses to an employment contract that are relevant to someone who runs a company. If you bring in an employee then they must be provided with an employment contract.
Confidentiality agreements
You have come up with an amazing business idea and understandably you want to share it with anyone who is willing to listen but take some advice from Gwen Stefani and “don’t speak.” That is, not until you have spoken to a lawyer about putting in place a confidentiality agreement with the right clauses.
You do not want to share too many of your new business details with a company that has the resources to execute your idea before you have had the chance.
Contracts with your suppliers and customers
Irrespective of whether your business is being supplied to or is selling a product/service, a legal document should be used to record details of the transaction so that all parties understand their rights and obligations.
Does your business have a website?
If your business collects or processes personal information there is a legal requirement to have a privacy policy page on your website and if you are going to be selling through your website there should also be a page specifying the terms and conditions.
New businesses do tend to overlook the protection of intellectual property (IP), as they think it only applies to designs. IP does, however, also cover your website content.
Every business has different needs and I have only covered the basics. The purpose however, of having written legal agreements is to clearly state what has been agreed and to create rights for the respective parties, which are enforceable in law.
This article is for information purposes only and legal advice should be taken for individual circumstances.
My Local Solicitors Ltd are experts in getting business start-ups off on the right foot. Our business start-up solicitors proved flexible, cost-effective legal advice to help you identify your legal requirements and grow your business the safe and legal way.
Get in touch on 01244 478 730 to discuss our essential legal documents package.
ESSENTIAL LEGAL DOCUMENTS PACKAGE, INCLUDING:
- A consultation with a solicitor.
- Terms & conditions of business.
- Confidentiality agreement.
- Consultancy agreement/employment contract.
- One round of amendments.
- Final documents.
