Taking Care of Business: Documents You Need to Start Your Own Company

types of business documents start company files

Thinking of starting a company? If so, you will need to have the right documents to make your business legal. 

There is a lot of paperwork involved and several types of business documents to obtain. All of this can get intimidating fast. 

In order to make the process smoother, you should know the documents you will need. Here is a look at all the relevant documents necessary in order to make your business a success. 

Your Founding Documents 

Your founding documents are important and the amount that you will need is directly related to the type of company that you form. 

If you have a sole proprietorship then you will probably not need anything more than a federal Employer Identification Number (EIN). If you form a corporation or LLC then you will need several other documents. You will need the information on the board of directors, bylaws, partnership agreements, and a certificate of authority. 

You may want to take a look at the benefits and steps for forming a California LLC vs. S Corp since this will help you to know which is better for your needs. You will also have a clearer idea of the documents you need. 

Collect Employee Records 

You will need to keep employee records for your business. There are various forms of records that will become necessary. Here is a list of the documents that you will need. 

• Recruiting records 
• Disability records 
• Employee contracts 
• Payroll records 
• Personnel records 

In most cases, you will need to keep these records for years in order to comply with federal law. 

Financial Records 

You will need to have tax returns and all the supporting documents on hand for at least three years. You are also advised to keep financial records such as receipts, invoices, and bank statements. 

If your business takes out a loan you should retain those loans for the life of the loan. If you intend to get another loan especially from the same lender you may want to hang on to those documents a little while longer. 

Contracts and Licenses are Important Types of Business Documents You Need 

If you have made any business agreements with vendors or independent contractors, you will need to keep these files safe. Bear in mind that there may also be certifications that you need. You may also need permits and licenses for your industry. 

An insurance policy for your business is a must so be sure to discuss your business plans at length with your insurance company. This is the best way to ensure that you protect your business in the event of liability claims or a lawsuit. 

Get Everything in Order 

As you can see there are several types of business documents that are necessary when you have a business. It can get intimidating knowing which documents you should get and at which times. The information here should make it easier. 

If you would like to get more information about starting a business, please visit the startup section of the website. We have a wide variety of articles on the types of business documents, legal filings, and contracts that you need to succeed.

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