Business Legal Documents: What Are They and How Should you Organise them?
As a business owner, it can be difficult to know where to start and what tools are available to you when it comes to organising your paperwork, particularly legal documents. What is the best way to collate your important files and information? And how can this make your business run more smoothly? Our partners Auderli are here to break down the most important aspects to keep in mind when considering your business documents, to get you started on tackling this daunting but unavoidable task.
What are legal documents?
The term ‘legal document’ covers a broad spectrum, but as a general rule it applies to any document which confirms an agreement between two or more parties and is solidified by their signatures at the end.
Every business will have some kind of legal document, but some of the most common business legal documents include:
- Company start-up documents
- This is not necessarily a legal document, but having easy access to all the paperwork related to the creation of your business including Sole Trader or LLC documents and trademark registrations make any legal processes run smoother.
- Confidentiality agreement
- Also known as non-disclosure agreements, or NDAs. This ensures the protection of any confidential information and aims to prevent third parties from spreading it. If the agreement is broken, having an NDA in place gives you right to claim in court.
- Purchase order and invoices
- Purchase orders help you to clearly set out the terms of payment when you take on a new client or customer. Keeping your outgoing invoices organised and dated leaves you better prepared ofr late payments nad potential legal action.
- Shareholder and partnership agreements
- A shareholder’s agreement takes place between the shareholders of a company and sets out how the business should be running and ensuring their continued cooperation in your business. An agreement document should state who the shareholders are, their rights and responsibilities and prepare for the future should they decide to leave your company.
- A partnership agreement works similarly but with your business partners, setting out how profits are managed and shared and how important business decisions are made.
- Employment contracts
- All employees of your business should have an employment contract. It details important information such as their duties and responsibilities, employment conditions, contract length, pay and notice period.
- Website privacy policy and terms of use
- This is perhaps a less obvious legal document, but having a written document outlining how your website will use people’s personal data and ensuring that users agree to your terms of use before signing up help you have a better standing in case any legal dispute comes up. You should have these two agreements even if you’re not selling anything directly on your website.
- Memorandum of understanding
- A Memorandum of Understanding, or MOU, is not a legally binding document but it does set out an initial agreement between two parties that they are willing and intend to move forward with a contract. Often used in high-stake business deal, an MOU is seen as the starting point for negotiations and outlines the scope of future discussions.
- Non-compete agreements
- A non-compete agreement, to put it simply, is an agreement between an employer and their employee that prevents the employee from utilising any skills and information they learn during their work to then enter into competition with said employer. This is usually within a specific geographical area and specific time frame. Previously, it has been said that these agreements are unfair and struggle to hold up in court as they limit an employee’s career advancement, so if you believe your business will benefit from this agreement, it has to include very specific conditions in order to protect your business wholly.
Storing your legal documents
Documents such as these can often be lengthy, and they need to be readily accessible in the case of any legal issues or if you want to consult a lawyer about your business. So, where do you start with organising them?
Using a tool such as Auderli’s new document upload feature allows you to keep all of your business-related documents in an easily accessible and up to date system, ready for you to find whenever needed. By either taking a photo or uploading a digital file, Auderli will securely store your documents in their cloud. You can also organise them into specific categories, meaning you no longer have to search high and low for paper documents. Passwordless login and multi-factor authentication gives you an added layer of protection for your most important information.
Secure sharing
What’s more, Auderli allows you to share your portfolio with anyone you choose. Whether your business involves working with other people’s finances or you want to share information and documents with a business partner, you can now easily kepe organised financial records and have full control over who sees your portfolio.
When you know where things are, you can ensure that you only find and share the relevant information. This is particularly the case when seeking the help of a financial or legal advisor such as us at Tiger Law, as you can give us secure access to the documents we need, meaning we can provide you with faster and more tailored advice.
Portfolio sharing streamlines various legal processes and means that you can spend more time focusing on the more pressing aspects of your work.
About Auderli
Auderli is a new online financial and life management tool which allows you to keep track of your accounts, assets and important documents all in one place.
Valuing simplicity, accessibility and usability – Auderli is designed for both people, businesses and contractors alike. By seamlessly integrating with financial platforms such as bank accounts or insurance providers, Auderli gives you a simple view of your overall net worth. You can then decide whether to share your portfolio securely with loved ones or financial and business associates.