Black Friday Sale! 50% Off All Access

The 10 Key Legal Documents for Your Business Entrepreneurs are not paperwork-sorts of people but some things just have to be written down and signed.

By Nellie Akalp Edited by Dan Bova

Entrepreneur+ Black Friday Sale

Our biggest sale — Get unlimited access to Entrepreneur.com at an unbeatable price. Use code SAVE50 at checkout.*

Claim Offer

*Offer only available to new subscribers

Opinions expressed by Entrepreneur contributors are their own.

Documents play an essential role in protecting the interests of the business and business owners over the course of a company's lifetime. Here is a list of the 10 most common legal documents to help you determine what your business needs.

1. Company bylaws for corporations. Most states require corporations to keep a written record of bylaws, although you don't need to file the document with a state office. Bylaws define how the company will govern itself. Even if your company is incorporated in the handful of states that don't require bylaws, they are still a good idea as they spell out your business' structure, individual roles, and governance issues. For example, bylaws can help settle a dispute on the length of a director's term or define if you need a simple majority to approve a decision.

Related: The Legal Ins and Outs of Forming a Partnership

2. Meeting minutes. Most states also require corporations to document what happens at major meetings. They keep an official account of what was done or talked about at formal meetings, including any decisions made or actions taken. They can help settle a dispute about what happened or didn't happen in a past meeting.

Your minutes should be detailed enough to serve as your corporation's "institutional memory." They should include: type of meeting; time and place of meeting; detailed attendance; all actions taken (purchases, elections, etc.); as well as any votes including how everyone voted and who abstained.

3. Operating agreement for LLCs. Although not required in most states, an operating agreement is recommended for every LLC, particularly when there are multiple members involved. This document outlines an LLC's financial and functional decisions. If there is more than one member, it becomes all the more important to define how key business decisions will be made, how profits and losses will be distributed, what are the rights and obligations of members and what happens when someone wants out of the business. Once members sign the document, it becomes an official, binding contract.

4. Non-disclosure agreement. Whether you realize it or not, your business has information that should remain private, such as customer list, financial records, or ideas for a new pricing plan. An NDA is your first line of defense to protecting this information. This legal document creates a confidential relationship between your business and any contractors, employees, and other business partners who might get a behind-the-scenes look at your operations.

Related: Rocket Lawyer: Cutting Out Small Business Attorneys' Fees

5. Employment agreement. This contract sets the obligations and expectations of the company and employee in order to minimize future disputes. Not every hire requires an employment agreement, but the document can be a useful if you want to dissuade certain new hires from leaving your company too soon, disclosing confidential information about your business, or going to work at a competitor. The contract should be reviewed by an experienced employment law attorney before given to an employee to sign.

6. Business plan. A business plan may not be a legal document, but it's required should you ever decide to seek financing or sell your business. Your business plan can be one page or a hundred pages, as long as it provides clarity on your business' opportunity and your roadmap to get there.

7. Memorandum of understanding. An MOU falls somewhere between a formal contract and a handshake. It documents any important conversations you have with suppliers, potential partners and others involved in the business. MOUs are great ways to lay out the terms of a project or relationship in writing, but do not rely on the document to be legally binding.

8. Online terms of use. While not required by law, any business with a website should include their terms of use. These pages can limit your liability in cases where there are errors in your own content, as well as information contained in any hyperlinks from your website. Furthermore, your Terms should let visitors know what they can or can't do on your site, particularly in cases where visitors can comment on blogs or share their own content.

9. Online privacy policy. If you gather any information from your customers or website visitors (such as email addresses), you are legally required to post a privacy policy that outlines how this information will be used and not used.

10. Apostille. Businesses involved in international trade with other Hague Convention countries may need a certificate, known as an "apostille,'' that authenticates the origin of a public document (like articles of incorporation) so they can be recognized in another country. Apostilles are only valid in countries that are members of the Hague Convention.

In most cases, you don't need to create any of these documents from scratch. You can find free templates online to serve as a starting point. While these legal documents are important part of staying compliant with your state requirements, they are more than empty formalities. By taking the time to think about the various elements on each document, you are setting the right foundation for your business.

Related: Using the Web to Get Legal Information

Nellie Akalp

Entrepreneur Leadership Network® Contributor

CEO of CorpNet.com

Nellie Akalp is a passionate entrepreneur and mother of four. She is the CEO of CorpNet.com, the smartest way to start a business, register for payroll taxes and maintain business compliance across the United States. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Science & Technology

I've Spent 20 Years Studying Focus. Here's How I Use AI to Multiply My Time and Save 21 Weeks of Work a Year

AI is supposed to save time, but 77% of employees say it often costs more time due to all the editing it requires. Instead of helping, it can become a distraction. But don't worry — there's a better way.

Business News

The Two Richest People in the World Are Fighting on Social Media Again

Jeff Bezos and Elon Musk had a new, contentious exchange on X.

Starting a Business

Why Are So Many Course Creators Struggling if It's 'Such an Easy Business'? Here's the Truth Behind the $800 Billion Industry

Creating an online course is so easy — at least, that's what many "gurus" would like you to believe. There's a lot of potential in the $800 billion industry, but here's why so many course creators are struggling.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Money & Finance

Why Donald Trump's Business-First Policies Trump Harris' Consumer-Centric Approach

President Donald Trump's pro-business agenda is packed with policy moves encouraging investment to drive economic growth. The next Congress has a unique opportunity to support entrepreneurship and innovation, improving U.S. competitiveness with the rest of the world.

Business News

Barbara Corcoran Says This Is the Interest Rate Magic Number That Will Make the Market 'Go Ballistic'

Corcoran said she praying for lower interest rates and people are "tired of waiting."