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Iceni Magazine | August 16, 2022

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Starting a Business: Important Documentation You Need to Have

Starting a Business: Important Documentation You Need to Have

Starting a business can be an exciting yet daunting process.

First, you’ll need to do some research and get all your ducks in a row before you’re ready to start up your company.

The whole process of starting your own business is called entrepreneurialism, and it’s something that many people aspire to do, but few follow through on. This blog post will go over the documentation you need when starting a new small business so that you don’t leave anything out.

Business Plan

A business plan is an important document that outlines the operations of your small business. It helps you through all stages of starting a new company, from financing to make sure you are on track with meeting requirements.

A business plan can also serve as proof for investors and lenders that what you envision for your company will produce some return on their investment. You can start your business plan on paper with a wide variety of online templates. However, if you want to make your project more professional and interactive, several software programs can help.

Your business plan should include the following sections: executive summary, company description, market analysis, products and services, marketing and sales strategy, operations plan, financial projections, and management team bios. While it is essential to have a business plan in place, remember always to revisit and update it as your business grows.

Legal Qualification

One of the most critical steps in starting a business is ensuring that you are legally qualified to do so. That means completing any necessary paperwork, LEI registration, and filing it with the appropriate government agencies.

The specific requirements will vary depending on your location, but there are some key documents that all businesses should have in order. For example, you will need to have articles of incorporation if your business is a corporation. This document details the purpose and structure of your company and its relationship with shareholders, employees, and directors.

Shareholder’s Agreement

A shareholder’s agreement is an important document to have when starting a business. This document outlines the rights and responsibilities of the shareholders in the company. It can also include details such as how to share profits, what happens if someone wants to sell their shares, and dissolved the company. In addition, a shareholder’s agreement can keep things organised and prevent disagreements between shareholders.

If you’re not sure where to start, there are plenty of templates online that you can use as a guide. Just make sure to tailor the agreement to fit your specific business. Having this document in place can help ensure a smooth transition when starting your business.

Confidentiality Agreement

A confidentiality agreement or non-disclosure agreement (NDA) is a legal contract between two parties who share confidential business information (CBI). A confidentiality agreement can protect your intellectual property and provide the other party with an obligation not to disclose it.

It is vital to have a confidentiality agreement with any potential partners or investors when starting a business. That will help protect your CBI and ensure it does not get into the wrong hands.

Tax Documentation

If you are starting a new business, your tax documents are some of the most critical documentation. That is because you will need to provide the IRS with information on your business, including the number of employees and income. While you can always come back and update these documents, it is much easier to have them ready from the start.

This means that you should ensure all of your tax documentation is in order before starting a new business. That includes having the documentation ready for when you receive money, how much your employees make, and other tax requirements.

You can find more information on the IRS website, including a list of specific documents you will need. Make sure to consult with an accountant or tax specialist to ensure you have everything in order. Failing to do so could result in penalties and fines down the line.

Financial Records

When starting a business, it’s essential to have all of your financial records in order. This includes documents like invoices, receipts, and bank statements. These records will help you track your expenses and revenue and make tax season much more effortless.

If you’re not sure what financial documents you need, your accountant can help. They’ll be able to tell you which records to keep and for how long. And don’t forget to keep copies of everything. You never know when you might need them.

Conclusion

Now that you know what documentation is necessary to start your business, it’s time to get started. The sooner you have all of the required paperwork in order, the sooner you can begin operating as a legitimate business. So don’t wait – get organised and file those papers today.


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