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The Paperwork You Need To Secure For Your New Business

When starting a new business, the process of getting things up and running can be deceptively simple. Launching your business, offering services, and taking payments might not be too difficult, but it’s very easy to miss a step, especially if that step involves getting some paperwork that you probably shouldn’t be active without. Here, we’re going to look at some examples of paperwork that’s a lot more than just a formality for your business.

Your articles of organization

If you’re starting a business, you want to make sure that your business is registered as the right kind of entity. Make sure you have this put in place before you start offering any services. If you’re running a partnership, this is going to take the form of a partnership agreement, but if you’re running a limited liability company, it’s going to be an LLC Operation Agreement, instead. If you’re not sure which is best for you, do some research into the pros and cons of different business structures.

Your bylaws

Bylaws are not, themselves, a strict set of regulations or laws that your business has to follow. Rather, they are a set of principles and practices by which your business will govern itself. However, in many states, it is mandatory to file these bylaws, especially if you’re running a corporation. Once you set your bylaws, then you’re obligated to follow them as filed with the state.

Your tax details

If you’re running a business as a sole proprietor, then you might be able to use your own individual tax identification number (though some states might demand otherwise.) In any case, if you want to hire employees or open business bank accounts, you are going to need to learn how to get a tax ID number for your business. The specific type of number you might need, such as an EID, might depend on the particulars of your business, so be sure to do your research on which is right. You don’t want to make any assumptions when it comes to tax.

Employment agreements

If you’re planning on hiring any employees, then you need to make sure that you have the documents that detail precisely what your arrangement with them is. With the help of HR consultants, you can craft employment agreements that ensure all the right elements are in place, including wages, benefits, duties, any confidentiality or competition clauses, and the like. Otherwise, plenty of disputes can arise.

A business plan?

There is no legal requirement for your business to have a business plan, nor are you going to get into any regulatory hot water if you don’t have one. If you want to apply for funding, however, it’s a very good idea to have one to show lenders or investors as proof that your business has a real chance of returning their investment.

When starting any business, you need to ensure that you have everything you need in place. The paperwork mentioned above is but one example, but it is a very important example.

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