Must Need Documents for Starting Your Business | Part 2 | LawWiser | #GetWiserEveryday
In the Part-2 understand about more about the must need business documents to start your business -
Financial Agreements: The first document on our agenda today is Financial Agreements. As a business owner, you should have a thorough understanding of your company's finances from A to Z. This helps you understand whether you're burning money, making profits, or at a break-even point. It provides insights into the quantitative productivity of each department and assists in tasks such as tax filing and budget proposals. Examples of financial agreements include the Profit and Loss (PnL) statement, which projects revenue and expenses, and the balance sheet, which records the company's assets and liabilities.
Transactional Documents: If you want to keep your financial statements organized, maintaining transactional documents is essential. These documents include receipts, invoices, order forms, and so on. These documents are crucial in legal matters that might arise in the future.
Business Insurance: Every business unquestionably carries a risk factor. We're not just talking about financial losses but also natural disasters, sabotage, business losses, death/accidents of partners, theft, or any other damages. That's why it's essential to maintain insurance documents that can cover all types of natural and man-made disasters. If one insurance policy doesn't cover everything, consider getting separate ones to ensure comprehensive coverage.
Partnership Agreement: As the name suggests, this is a contract between two or more individuals who are starting a business together. It outlines how profits and losses will be shared among partners. This document lists obligations, both legal and operational, liability of debt, profit sharing, and individual responsibilities of the partners involved.
Co-founder Agreement: This agreement becomes necessary when there are multiple founders. It highlights the rules, obligations, and each partner's share. It can also specify each person's capital contribution, budgets, and allocations.
Business Pitch Deck: Every business needs an inspiring and insightful deck that covers every aspect of the company. This can be presented to prospective clients, shareholders, and venture capitalists who are interested in investing in the business.
Investor Agreement: Investors are vital for any business, especially during different growth phases. An investor agreement is created to document the subscription of shares in exchange for the investments made. It specifies the investment parameters, the amount invested, the parties involved, and the promised dividends and returns.
These documents are fundamental for the smooth operation and long-term success of any business. Make sure you have them in place to secure your business's future.
