Key Documents You Need When Starting a New Business
Take the Right Steps to Maximize Your Chances of Success
Going into business for yourself will almost always be a bit nerve-wracking. There are seemingly endless details to which you must attend, and unknown factors will always have an impact on your enterprise. But when you start a business, there are a number of documents you should put in place to improve the likelihood of success. (These are in addition to the documents you must file with the state to legally create your company.)
- By-laws or an operating agreement—If you set up a corporation, you need by-laws, which set forth the rights, responsibilities, and powers of shareholders, members, directors, and owners. If you choose a limited liability company as your business structure, an operating agreement serves the same purpose.
- Non-disclosure or confidentiality agreements—It’s important to protect information that’s confidentially available to employees, vendors, customers, and others. A valid non-disclosure agreement can protect formulas, processes, customer lists, and ways of doing business.
- Protection and/or assignment of intellectual property—In today’s business environment, it’s likely that your intellectual property will contribute significantly to your economic health. Make certain any existing patents, trademarks, and copyrights are owned by, or assigned to, the company, and take immediate steps to secure protection for all additional intellectual property.
- Business contracts—Though many oral contracts are enforceable, you’ll have fewer proof problems when you put things in writing. The following documents, among others, should be prepared in written form: employee agreements, licensing agreements, vendor and customer contracts, shareholder agreements, partnership agreements, and non-compete agreements.
- A statement of ownership and contribution—Be certain to clearly identify property owned by the business and the specific contributions of all partners, members or shareholders.
Contact the Law Offices of Howard N. Sobel
Protect your rights when setting up a business in New Jersey. For professional and knowledgeable legal counsel with a personal touch, contact our office by e-mail, or call us at 856-424-6400 to see if you qualify for a free initial consultation (on selected cases). We are available evenings and weekends upon request.
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