An update to the blog, “Key Legal Documents That a Startup Business Cannot Avoid”
Whether you run a startup, an established company or you’re planning to start a business, managing legal documents such as non-disclosure agreements (NDA), employee agreements, LLC agreements and so on can be challenging. Digitizing and storing these important legal documents is necessary for businesses to avoid fines, penalties, lawsuits and any such legal consequences. An experienced document scanning company can help businesses scan, index and digitize their legal documents. By digitizing, all your confidential documents will be safe, easy to access and kept protected from natural disasters such as fires and floods.
Here’s a list of legal documents that most businesses have to deal with –
Any business will have certain critical information that should be kept private, such as customer data, financial details, employee data, specific project plans and more. Signing confidentiality or non-disclosure agreement (NDA) restricts your business partners, contractors as well as employees from disclosing any confidential information related to your business and brand to a third party, and they may only use that information for a particular reason. Anyone violating the NDA can be sued for damages caused or may be required to compensate your business for any loss that may occur.
An employment contract needs to be generated for each employee appointment. Most companies maintain a written employment agreement and this document covers all important aspects of the job such as – salary, benefits and other compensation, duties and responsibilities, working hours, job position, NDAs to sign, termination and notice period and more. A well-prepared employment agreement can minimize future disputes.
Memorandum of Understanding (MoU)
MoU is an important document that outlines an agreement or any significant conversation between you and your suppliers, potential partners or any others involved in the business. Though not legally binding, it is critical during the Intention Stage of a project and is necessary while moving to the Contract stage. A memorandum of understanding allows all parties to clearly state their objectives and goals.
Limited Liability Company (LLC) Agreements
Running a business as a limited liability company (LLC) comes with diverse advantages. Certain states require an operating agreement for Limited Liability Companies, mainly when multiple members are involved. This agreement summarizes the company’s economic and functional decisions such as – how profits and losses will be distributed among members, business management guidelines, how key business decisions will be made, rights and responsibilities of each member and the procedures to follow, if any member wants to terminate their partnership with the company.
Many businesses start with a partner, that shares all the responsibilities along with the related costs. While there are many advantages of having a partner, there are disadvantages too. There are high chances for issues or conflicts to happen at any time, if there’s any kind of disagreement between the owner and the partner. So, it is important to record your partnership deals in an agreement, which will be strong evidence in case of any legal disputes. Often, 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.
In one way or the other, all these are important legal documents for your business. Make sure to benefit from professional legal document conversion services to convert all these legal documents into the required electronic formats.