What legal documents do I need to set up a new business?
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If you are looking to set up a new business, there are several legal documents that must be prepared in order to properly establish the business entity. At a minimum, these documents include:
1. Articles of Incorporation (for corporations) or Certificate of Formation (for LLCs): This document is filed with the relevant state agency and establishes the legal existence of the company as a distinct business entity in that jurisdiction.
2. Operating Agreement/By-Laws: If creating an LLC or Corporation, this document outlines how management powers and responsibilities will be allocated among members, directors and officers; describes voting rights; sets membership classes; specifies financial reporting requirements; and identifies other important rules related to running your organization.
3. Federal Tax ID Number Application: This application assigns a unique Employer Identification Number (EIN) to your new business which is required for tax purposes including filing taxes, paying employees, and opening bank accounts under your company’s name.
4. Business License Applications: Depending on the type of industry you operate in and where you reside geographically, it may be necessary for businesses to obtain various licenses from local or state authorities before beginning operations legally within their locale(s).
5 Additional Documents/Contracts: Depending on specific circumstances such as capital structure needs or employee hiring plans it might also be beneficial for organizations to have additional documents like buy-sell agreements between owners outlining what happens if one owner wishes to leave the business prematurely; non-disclosure agreement forms if sensitive information about customers is obtained by employees; independent contractor contracts for non-employee workers providing services etc.. All parties should understand what they are signing before entering into any contractual agreement with another party involved in establishing/operating your company going forward!
It is highly recommended that entrepreneurs seek advice from experienced attorneys familiar with small businesses formation prior to starting any operations -particularly when large investments either financially or human resources wise will occur – since each situation can carry different implications depending on timing & context factors associated with when certain decisions were made along each step of setting up shop!
