MoU stands for Memorandum of Understanding. This is an important legal document for businesses that includes important conversations with your suppliers, potential partners, and others involved in the business. The story is this: Jonathan Hoefler met Tobias Frere Jones, a competitor, in 1999 while trying to acquire a German foundry catalog. Although you may think that you are in perfect harmony with your colleagues, communication problems and the differences that arise can be very damaging. A founders` agreement will show potential investors that you are serious about your business, that the co-founders have a clear agreement and vision for the future, and that you will do what is necessary to make the company a success. A non-disclosure agreement is an important legal document for businesses because it protects trade secrets. One of the biggest advantages of this business model is that it`s easy to educate and operate, especially if you`re a small business or startup. There are nine basic legal documents you need to have before starting a business. This article covers each of these documents separately and explains why they are important to the success of your business. Anyone involved in the partnership/shareholder agreement must understand the terms of the partnership/shareholder and agree that litigation may have consequences in the future and may lead your business to nothing.

The Internal Revenue Service issues Employer Identification Numbers (EINs). An EIN is the basic tax identification number of a company or non-profit organization. Many banks and commercial lenders require an EIN before opening a professional-grade account with a new business. Two of the most attractive things about an LLC are that it prevents business owners from being personally responsible for things related to the business, and it offers pass-through tax status. It also has fewer formalities and requires less legal paperwork. It is essential to know who owns your company`s intellectual property rights (IPR). If you`ve hired employees before, you own the intellectual property of everything they`ve created for you, unless it was before you started your business. However, if the intellectual property such as logos, trademarks, software, patents, content or technology was not created by an employee or person before becoming an employee, you will need the IPR attributed to your company.

Whenever your business needs the help of an SME or individual entrepreneur, you should seek the help of a legally viable document (read: contractor contract) that sets out all the relevant details such as deadline, scope, payment, etc. so that there is no confusion later. For tax benefits or other reasons, some business owners choose to get involved in a different state than where they do business. In these cases, the business owner must «qualify as a foreigner» in the state where the business operates. To apply for a foreign qualification, a company must submit a Certificate of Authority application form and pay the fee to the Secretary of State`s office. A non-competitive obligation is a contractual obligation between an employer and an employee or contractor whereby the employee or contractor agrees not to work for competitors of the employer or to open a competing business after the employee or contractor has completed their service. Restrictions of competition may apply for a specified period of time in a specified area and region. Issue invoices on time and keep track of all payment-related documents, as they are essential when tracking debts.

Make sure you understand how to handle late payments and follow proper procedures to get your money back. If a customer is late with paying your invoice, send a formal reminder letter for the first payment. It may ask a customer to pay the overdue bill so you can track your cash flow. In Texas, dozens of professions are regulated, from doctors and lawyers to geoscientists and interior designers. Check with your state`s Bureau of Business Services to see if a special license or business license is required, or if individual employees need a professional license or warranty as a condition of employment in the industry. And depending on the type of information, it can cause serious damage and, in some cases, cause you to lose your business. By clarifying the scope of use and protection of personal data, website providers can comply with legal or regulatory requirements related to data collection and avoid future disputes regarding data breaches. The terms of use of a website govern the legal relationship between the website operator and users and ensure that users accept your terms when using your website. For this reason, it is very risky for a company to enter into a contract to do or receive something of value, or if there is a risk, unless it is in writing.

While the law offers some protection to both parties in the event of a problem, no serious business will rely solely on implied conditions when the stakes are high. Most states have specific laws that restrict the use of an NDA to cover actual trade secrets, to be used for a reasonable period of time and to cover an appropriate geographic area. It`s important to seek legal advice before using an NDA to make sure it`s legal in your state. And as your business grows and grows, the range of potential contracts and the risks associated with them increase, making it increasingly important to have a lawyer on board. However, if the stakes are high, consider hiring a business lawyer to draft supplier contracts for you so that the terms are skewed to your advantage.