When starting a new business, the memorandum of association is a well-known legal document that outlines the company`s objectives, structure, and purpose. However, there are other legal documents that may be required, depending on the type of business and its structure. In this article, we`ll explore some of the other contracts that you may encounter as you set up your business.
1. Articles of Association
The articles of association are another important legal document for companies that are registered as corporations. They outline the internal rules and regulations of the company, including the roles of the directors, how shareholder meetings are conducted, and how profits are distributed.
Companies are required to have articles of association, which can be drafted by the company`s lawyers or found in pre-existing templates, like those provided by government agencies.
2. Partnership Agreements
For partnerships, a partnership agreement is often required. This document outlines the terms and conditions of the partnership and includes information on how profits will be divided, how disputes will be handled, and how the partnership can be dissolved.
It`s critical to have a partnership agreement in place, as it can help prevent disputes from arising and ensure that everyone involved is on the same page.
3. Operating Agreements
Limited Liability Companies (LLCs) require an operating agreement, which outlines the guidelines for the company`s management and operations. It can be used to cover a wide range of topics, such as how profits are distributed, how to handle disputes between members, and how to make decisions about the company`s future.
An operating agreement can give the LLC`s members more flexibility and control over the company`s operations while also protecting them from personal liability.
4. Employment Contracts
When you hire employees, it`s important to have a written employment contract. This contract outlines the terms and conditions of employment, such as salary, benefits, and job duties.
Having an employment contract in place can help protect both the employer and employee by setting clear expectations and preventing misunderstandings.
5. Nondisclosure Agreements
Nondisclosure agreements (NDAs) are contracts that are used to protect confidential information. They are often used when hiring employees, working with contractors, or entering into other business relationships.
An NDA sets out the terms under which confidential information can be shared and outlines the penalties for breaking the agreement.
In conclusion, when starting a new business, it`s essential to have a range of legal documents in place to protect your interests and ensure that everyone involved is on the same page. The five documents outlined in this article – articles of association, partnership agreements, operating agreements, employment contracts, and nondisclosure agreements – are just a few examples of the legal contracts that may be required, depending on the type of business and its structure. By working with experienced lawyers and copy editors, you can be sure that your business has all the necessary contracts in place to succeed.