Skip to content
All posts

What legal documents do I need to have in place for my small business in Pennsylvania?

As a lawyer, my advice for small business owners in Pennsylvania is that they should have certain legal documents in place to comply with state and federal laws, minimize liability, and protect their business interests. Some of these legal documents include:

  1. Business Plan: A comprehensive business plan outlines the company's goals, mission, objectives, strategies, market analysis, operations, finances, and future projections. It provides a road map for running the business and helps secure financing, investors, partners, or customers. It also helps identify potential risks and opportunities.
  2. Business License: A business license is required in Pennsylvania for certain types of businesses, such as those engaged in retail sales, food service, professional services, construction, transportation, manufacturing, or entertainment. The specific requirements and fees vary by city, county, and industry. Business owners should research and obtain the necessary licenses and permits before starting operations.
  3. Articles of Incorporation: If the business owner wants to form a corporation or a limited liability company (LLC), they need to file Articles of Incorporation or Organization with the Pennsylvania Department of State. These documents contain information about the business name and address, purpose, stock structure, management, and registered agent. They also establish the legal identity and liability protections of the business.
  4. Bylaws or Operating Agreement: Once the business is formed, the owner should adopt Bylaws (for a corporation) or an Operating Agreement (for an LLC) that set forth the internal rules and procedures for conducting business. These documents typically address issues such as voting, meetings, record-keeping, management, ownership, dissolution, and dispute resolution.
  5. Contracts: A small business should have well-drafted contracts to protect its rights and obligations in various transactions, such as sales, leases, employment, services, distribution, licensing, or partnerships. Contracts should specify the terms and conditions of the deal, the parties' responsibilities and warranties, the payment and delivery schedule, the dispute resolution mechanisms, and the governing law.
  6. Employee Handbook: If the business has employees, it should have an Employee Handbook that outlines the company policies and benefits, as well as the employees' rights and obligations. It should cover topics such as discrimination, harassment, safety, leave, benefits, discipline, and termination. The Handbook should be regularly reviewed and updated to comply with any changes in the law or business practices.
  7. Intellectual Property Protection: If the business creates, uses, or sells intellectual property, such as trademarks, copyrights, patents, or trade secrets, it should have appropriate legal protections in place. This may include registering trademarks or copyrights with the U.S. Patent and Trademark Office or the U.S. Copyright Office, or filing for patents with the U.S. Patent and Trademark Office. It may also include using non-disclosure agreements or confidentiality agreements to protect trade secrets or other proprietary information.

In conclusion, having the above-mentioned documents in place will provide small business owners in Pennsylvania with the legal protection and structure needed to operate successfully. It's important to consult with an attorney to ensure that the legal documents are drafted correctly and comply with the law.