When it comes to your company’s documentation, you will be required to retain a variety of essential paperwork, each of which falls into a specific category. Although it’s tempting to think of corporate documents as being about as exciting as watching paint dry, the reality is that these documents are an essential part of your company.
You may develop a more prosperous and professional business with the assistance of some of the most significant corporate papers, which can also assist you in shielding your assets from any legal complications.
The tricky part is determining which ones are appropriate for you and your organization. The following is a list of some of the essential pieces of business documentation that you will want before you can get started:
Articles of Incorporation
Articles of incorporation must be filed with the company Center to form a company. Your company does not exist outside of these papers. When filing or responding to a case, they are also one of the most crucial papers to have on hand.
If a customer is injured on your premises or their house is damaged by one of your products, your articles of incorporation might shield you from legal responsibility. The following is a checklist of the sections of the pieces of incorporation needed by your state that should be included in your corporation’s copies.
- Incorporator’s name
- Registered agent’s name (The registered agent is the person or business that receives legal notices on behalf of the corporation.)
- The specific language states that the corporation will act as a “public” entity instead of a private one. (A private corporation cannot issue stock shares.)
- Name of the corporation (must be unique)
- Purpose of the corporation (The goal can be anything from “manufacturing” to “researching.”)
- Number of directors and their terms
- Date when directors are elected/appointed and term lengths
- Number of shareholders allowed (must be at least 1) and their shares
In their most basic form, bylaws are nothing more than the guidelines and framework that govern the operations of your business. They decide the structure of your organization, how it will function, and the kind of choices that may be made by the board of directors and the shareholders.
Everyone who holds shares in your firm, including you, should obtain a copy of the bylaws that govern your organization. Create a “Shareholder Folder” for each shareholder so you can store all corporate documents, including the bylaws, in one place. This is a practical approach to keep track of all of this paperwork.
Minutes of Board Meetings
The minutes of board meetings are one of the most important but underappreciated parts of any company’s paperwork. The minutes of a meeting are a written record of the proceedings of that meeting. They aren’t only for posterity; they make it simple to return to a particular issue or choice, which is very helpful when speaking with an attorney or auditor.
Consider previous minutes’ length, structure, and style while writing your own. Some companies choose brief minutes that get right to the point, while others provide extensive information. Looking at typical practices in your field will help you decide how much information is appropriate for your minutes. Put less information on paper if it’s unnecessary in your line of work.
Non-Disclosure Agreement (NDA) As One of the Corporate Documents
Proprietary and confidential information may be safeguarded via a non-disclosure agreement (NDA). Businesses often utilize non-disclosure agreements (NDAs) to protect proprietary information such as designs, prototypes, methods, strategies, and trade secrets.
A non-disclosure agreement (NDA) guarantees not to disclose secret information from one party to another. Although a non-disclosure agreement may cover many different types of information, it is typically only recognized as legitimate when protecting sensitive data.
A well-written NDA will include the following:
- The identity of both parties
- What type of information is considered confidential
- How the data must be kept confidential
- What happens if the NDA is breached
At the Corporation Center, we know precisely what each corporation document needs to contain and can help you choose the best one. We’ve helped many entrepreneurs begin their businesses with the appropriate corporate documents. Contact us today to find out how we can help your business succeed.