What Legal Documents Needed to Start a Business

1. Business Plan

While a business plan isn’t a legal requirement, it may be said that it is one of the most essential documents to open a new business venture. That is the basis on which the business will be established. This is a formal document that outlines how you plan to achieve your objectives, what you want to achieve, what you are offering to the market, who you are offering it to. It assists in establishing the simplicity of the business idea, the course that the business will undertake in the future and is mostly included in files submitted to the bank loan officers or investors.

Tip: Many banks and some organizations such as the small business administration (SBA) offer help in embarking on writing your plan.

2. DBA and LLC

Such are typical business abbreviations denoting the official structure of your business and which, therefore, always demand having the appropriate documentation prepared and submitted.

DBA means ‘doing business as’ and is utilized bywoners wishing to run their business with different name. A DBA registration can be submitted with city, county or state officials and allows the owner to operate business under a name other than his own. I have to emphasize, that this registration doesn’t have any legal effect, and gives you no legal protection in any sense.

Note: DBA registration is a legal necessity for sole traders to enable the opening an account and receive money in the business name.

An LLC, is a form of business entity which generally gives the business owner or partners, immunity from being held responsible for the debts of the business. It also offers trademark in addition to the option for the owners on how the business will be incorporated as far as tax is concerned.

3. Federal Tax ID

If a business is not a sole trader it will require a federal tax identification number. Currently, using sole proprietorship, your Social Security number is your ID number for taxes.

4. Licenses And Permits

In many jurisdictions, most kinds of economic activity require legal permits, which are licenses to operate legally. However, some of the state and local government jurisdictions have special permit, certificate and additional license for certain type of business-like restaurants and manufacturing plants for instance. They are contingent with the kind of business you possess and the geographical location of the business.

5. Sales Tax License

If your state requires you to collect sales tax from the items your business sells, you will be in need of a sales tax license (although some states refer to it as a permit or registration) to affect the payment of the taxes on the items sold by your business.

6. Trademark

Even though not mandatory it is advisable to patent a trademark as a means of safe guarding your business logo and brand. For more information about trademarks, go to the U. S. Patent and Trademark website.

7. Confidentiality Agreement

A legal instrument of great importance in protecting your secrets of the trade is a confidentiality agreement or a non-disclosure agreement. It protects your personal and privileged data from being disclosed or embezzled.

Moreover, a professional lawyer can guide you step by step to pursue your set up smoothly.

Professional lawyer have dedicated their lives to the craft and stand by your side throughout the entire case, should you have any questions or concerns about the process.