While you are in the planning stages of your Nevada business is the time for you to research the legal documents that you will need. At the Aldrich Law Firm, Ltd., we have represented many entrepreneurs in negotiations and litigation to correct issues that may have been avoidable with the right documentation.
Forbes magazine notes that having more than a general understanding of commercial law is essential. The legal documents you may need can fall under a number of different practice areas, including contract, intellectual property and employment laws.
Contracts are the foundation of a company, and these should be specific and well-drafted. For example, the contract detailing your agreement with your co-founders should include the following information:
- What percentage each of you owns of the company
- The amount of control you each have over major decisions and day-to-day operations
- Your roles and responsibilities
- How you will divide profits and/or get paid
- The process for leaving the company, selling it or dissolving it if the partnership no longer works
You will also need to have standard contracts that you can customize to vendors, clients and customers. This may involve the following:
- Pricing and payment, including penalties for late payments
- Limitations on liability
- Dispute resolution
There are also legal methods for protecting your intellectual property which you should not wait to act on. Trade secrets, inventions, original works and even the name of your company may be the foundation of your success. Copyrights, patents, trademarks, service marks and confidentiality agreements may be vital to preventing someone else from stealing your profits.
Before you hire your first employee, you need a policies and procedures manual and employee handbook. These help define the working relationship, and in some cases the documents may function as an employment contract. You may also need individual employee contracts that include details about matters such as benefits packages, noncompete clauses and confidentiality agreements.
Many information about business startup challenges is available on our webpage.