Top 9 Legal Documents You Need to Start Your Business

Starting a business is exciting, but it’s not just about the idea, product, or branding — there’s also the legal side. While paperwork might not be the most glamorous part of launching a company, getting the right legal documents in place is absolutely essential. These documents protect your business, define relationships, set clear expectations, and ensure you’re compliant with the law.

 1. Business Formation Documents (Articles of Incorporation or Organization)

Why you need it:
Before you can operate legally, you have to register your business with the government. The specific paperwork depends on your business structure.

• If you’re forming an LLC: You’ll file Articles of Organization.
• If you’re forming a corporation: You’ll file Articles of Incorporation.

What it includes:
These documents lay out basic information like:

• Business name
• Address
• Type of business
• Names of owners or directors

 2. Operating Agreement (for LLCs) or Bylaws (for Corporations)

Why you need it
These are the rulebooks for your business. They explain who owns what, how decisions are made, and what happens if someone leaves or dies.

Operating Agreement (LLC) and Bylaws (Corporation) help you:

• Define roles and responsibilities
• Outline voting rights
• Handle profit sharing
• Set rules for meetings and decision-making

Why it matters
Even if you’re a one-person show now, having these documents helps you avoid future legal headaches. Investors, banks, and even some states require them.

 

3. Partnership Agreement (if you have a co-founder)

Why you need it
If you’re starting your business with someone else, get everything in writing from day one. Trust and friendship are great, but they’re not a substitute for clear legal terms.

What it covers

• How much each partner owns
• Who makes what decisions
• How profits (and losses) are divided
• What happens if someone wants to leave

Example
Two best friends start a coffee shop. One wants to expand after a year, the other wants to stay local. Without a written agreement, this difference could become a major conflict. With a partnership agreement? There’s a plan in place.

4. Non-Disclosure Agreement (NDA)

Why you need it
Your business idea, client lists, or secret sauce — all of it could be valuable to competitors. When you’re talking to potential partners, employees, or freelancers, make sure they sign an NDA to protect your confidential information.

Key points

• What information is considered confidential
• How long the confidentiality lasts
• What happens if someone breaks it

 5. Employment Agreements & Offer Letters

Why you need them:
If you’re hiring employees, you need a document that sets clear expectations from the get-go.

Offer Letter: More basic; outlines salary, job title, start date, etc.
Employment Agreement: More detailed; includes responsibilities, benefits, termination clauses, etc.

Why it matters:
This document helps avoid misunderstandings about:

• Job duties
• Pay and benefits
• Intellectual property ownership
• What happens if someone quits or is fired

Some tips
Make sure to include a clause that any work done by employees belongs to your business — not to them personally.

6. Independent Contractor Agreement

Why you need it
Hiring a freelancer or consultant instead of a full-time employee? Great! But make sure there’s a clear agreement in place.

What to include

• Scope of work
• Deadlines
• Payment terms
• Ownership of work
• Confidentiality clauses

Why it matters
It protects both sides and makes sure you’re not accidentally crossing into “employee” territory — which can have tax and legal consequences.

Real example
If a graphic designer creates your logo but you didn’t sign a contractor agreement giving you full rights, technically they might own the logo, not you.

7. Intellectual Property Assignment Agreement

Why you need it
If anyone (employee or contractor) creates something for your business — code, content, product designs, branding — this document ensures that you legally own it.

What it does

• Transfers ownership of work to your business
• Clarifies that the creator has no further rights or claims

Why it’s critical
Without it, someone who helped early on could later claim ownership of your product or sue you for using “their” work.

Bottom line
This is especially important for tech startups, creative businesses, or anything involving original work.

8. Business Licenses and Permits

Why you need them
Depending on your industry and location, you may need specific licenses or permits to legally operate.

Examples include

• General business license
• Health permits (for food businesses)
• Zoning permits
• Sales tax permits
• Professional licenses (for things like legal, medical, or construction services)

Where to check
Start with your city or county business office and your state’s business division. They usually have checklists.

Heads up
Operating without the proper license can lead to fines or being shut down. Not worth the risk!

9. Privacy Policy & Terms of Service (especially if you’re online)

Why you need them
If you have a website, app, or collect any user data, these documents are more than just a formality — they’re a legal necessity.

Privacy Policy
Explains how you collect, use, and store data (like names, emails, payment info). Required by law in many places — especially if you have users in California (CCPA) or Europe (GDPR).

Terms of Service (ToS)
Outlines what users can and can’t do with your site/app, limits your liability, and sets rules for dispute resolution.

Plain English version
This is your legal “fine print.” It helps protect you if a user misuses your platform or tries to sue you because something went wrong.

Final Thoughts: Don’t Skip the Legal Stuff

Starting a business without the right documents is like building a house with no foundation. Sure, it might look okay on the surface — but the moment there’s pressure, cracks start to form. Lawsuits, misunderstandings, missed opportunities — they’re all avoidable if you handle your paperwork early.

Here’s a quick recap of the Top 9 Legal Documents

1. Business Formation Documents (Articles of Incorporation/Organization)
2. Operating Agreement or Bylaws
3. Partnership Agreement
4. Non-Disclosure Agreement (NDA)
5. Employment Agreements & Offer Letters
6. Independent Contractor Agreement
7. Intellectual Property Assignment Agreement
8. Business Licenses and Permits
9. Privacy Policy & Terms of Service

Bonus Tips

• Hire a lawyer for at least a quick review of your documents.
• Keep copies of everything — digital and physical.
• Update your documents as your business grows or laws change.

Your business is worth protecting. Taking the time now to get your legal foundation in place can save you from major problems later. Think of it as investing in your business’s future — because that’s exactly what it is.