Certain business documents are required by law for you to keep on hand for your business. You will need documents to start, operate, and expand your business. There’s no way around it. Making sure you have these essential documents in order will help ensure that you have them when you most need them.
Technically, a business plan is not a “legal document” nor is it required to start a business, but it’s an important document to have. It is recommended to develop a business plan before you attempt to secure financing, look for a commercial space, or even pick a business name. This document forces you to assess your goals, know your resources, strategize, and determine the feasibility of your business endeavor. Most successful businesses start with a business plan.
A Documentation of Bylaws
Bylaws are regulations a company establishes to govern itself. Everything a business does has to follow the regulations set by its bylaws. While some states don’t require businesses to have bylaws, it’s always a good idea to have them in order. Create a document of bylaws that details your company’s structure, individual roles, and governance problems. In the event your company ends up in a dispute, your directors will know what to do.
Business Licenses and Permits
Depending on what industry you are in, you will likely need to acquire business licenses and permits. At the very least, you will need a business license from your city or county of government. Businesses selling products and services subject to sales taxes need a sales tax license from the state tax authority office in all the states they are operating in. Businesses regulated by a federal agency, such as alcohol and tobacco, will need to apply for a federal license or permit.
How you organize your business will determine what kind of entity documents you will need. If you organize your business as a sole proprietorship, you just need to have general business documents, like an EIN and tax identification number if you have employees. For partnerships, you will need to have your partnership agreement in order. Businesses organized as a limited liability company (LLC) will need to have an Articles of Organization document. And last, corporations will need to have incorporation documents that include Articles of Incorporation, bylaws, and meeting minutes.
Organize Your Business Documents with DK Rus Law
DK Rus Law is a Maryland business lawyer here to help business owners throughout Maryland organize their business. We help ensure you have the right documents, choose the right entity structure, provide helpful legal business advice, and much more. Contact us now to request a free consultation.