Whether you are a business that specializes in home design or clothing, you will have documents that will need to be notarized. Here you will discover the types of documents that you should consider having notarized when starting a business or if you have been a business for a while.
Partnership Agreement Document
Starting businesses are normally easier when done with a partner that you can share the responsibilities with as far as startup costs and other things needed to get your business up and running. There are numerous problems that could arise from a business partnership. This is why finding a notary can be one less thing to worry about. You can go online and find a reliable company that can come to you. Contact Superior Notary Services here to learn more: https://www.superiornotaryservices.com/find-a-notary-near-you/.
Every owner of a business needs to understand all the terms and conditions of the partnership and agree to them. Having the documents notarized by a notary will ensure peace of mind and protection for all parties legally. When disputes arise, they can be resolved a lot easier when this document is in place and notarized. Addressing the following issues with a partnership agreement will clearly define the terms and conditions you and your business partner share, avoiding costly legal problems down the road:
- Names of all the partners
- The length of time of the partnership
- Contributions to the business from all parties involved in terms of money, land, or equipment for the business
- Division of labor and authority
- Arrangements when a business partner dies or ends the partnership
LLC Operating Agreement
Starting your business as a limited liability company (LLC) has its advantages that aren’t available with sole proprietors or partnerships. These advantages help to limit personal liability. However, there are enormous cash flow and tax advantages that you can take advantage of which makes operating your business as an LLC a little more attractive.
You can start an LLC just by going to your Secretary of State’s website and filing which usually is easy and straightforward to do. But, if your LLC has two or more owners, you will want to fill out a limited liability company operating agreement defining how the LLC will be operating and how it is going to be taxed.
State laws along with the IRS have established a standard of rules and regulations that you must follow and operate as an LLC. With an operating agreement, you can change or adjust rules and regulations and have a standard for how you want the business to operate.
The operating agreement is vital to your LLC as it explains the following:
- Individuals who own the LLC
- Operation of the business and how it’s going to be managed and the owner’s responsibilities and obligations
- Whether or not it should be taxed as a partnership or an S corporation
In the world of a competing business environment, startup businesses can’t afford to have problems. Things that often cause tremendous problems for a business is not having a buy/sell agreement that is signed and notarized.
A buy/sell agreement is an agreement that is between two or more parties, such as the owners of the business and their heirs.
Business relationships can change over time. Partners may choose to leave the business, or new partners can be added. A buy/sell agreement defines all the arrangements in advance and makes transitioning easier for everyone involved.
Later down the road, you or your partner may want to retire, or someone may pass away. If you have an heir, you could pass your portion of the business on to them. A buy/sell agreement will assist in planning ahead for such a time and determine the following:
- What happens to the business when a partner dies?
- Will the heir be able to become a new partner or be required to sell their part of that business?
Having a notary to assist you in notarizing these types of documents could make starting a clothing or home decor business with the correct documents a much easier and smoother process for all business owners and those businesses that have partnerships.