Five Legal Documents Necessary for a Startup Business
The blog discusses the top five legal documents that most businesses or companies need to deal with.
Managing legal documents can be challenging task for startups as well as established companies. Companies need to handle a wide range of legal documents like employee
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agreements, non-disclosure agreements (NDA), LLC agreements and others as part of their routine business activities. Digitizing and storing key legal documents is important to avoid penalties, fines, lawsuits and other legal consequences. Relying on the services of a reputable and professional document scanning company can help businesses scan, index and digitize their legal documents. Digitization will ensure the safety and confidentiality of documents ensure ease of access, and protect them from natural disasters. Here are the top legal documents that most businesses need to keep – •
Non-Disclosure Agreement (NDA) – Every business needs to maintain privacy of critical information related to customers, employees, project plans and more. Signing a non-disclosure agreement (NDA) restricts your business partners, contractors as well as employees from disclosing any confidential information related to the business to a third party.
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Partnership Agreement – Many businesses function on a partnership basis. In case of a partnership business, there are more chances for issues or conflicts to occur at any time due to differences of opinion between the partners. A partnership agreement can act as a strong piece of evidence in case of legal disputes. A partnership agreement includes details such as the names of the partners, their contributions to the business in all terms (money, land, or equipment), duration of the partnership, division of labor and authority, and more.
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Memorandum of Understanding (MoU) – The MoU is a document that gives an overview of an agreement or any significant conversation between you and your suppliers, potential partners or any others involved in the business. A memorandum of understanding allows all parties to clearly state their objectives and goals.
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Employment Agreement – An important aspect for appointment, most companies maintain a written employment agreement that primarily covers all significant aspects of the job like - salary, benefits and other compensation, duties and responsibilities, working hours, job position, termination and notice period and more.
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Limited Liability Company (LLC) Agreements –Limited liability companies (LLC) are a preferred option for small businesses. An operating agreement may be needed
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for Limited Liability Companies, mainly when multiple members are involved. This agreement summarizes the company’s economic and functional decisions such as – distribution of profits and losses, business management guidelines, key objectives of business decisions, rights and responsibilities of each member and the procedures involved in termination of partnership with the company. In short, all the above-listed legal documents benefit businesses in one way or the other. Professional legal document conversion services are available to convert legal documents into the required electronic format.
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