Most business owners want to concentrate on serving customers and making a profit. No business owner wants to spend time doing legal documents or considering the risks that arise from missing a T and C, however it’s the essentials that can often cause the greatest risk to small businesses, so a 2 minute read could save you a lot of stress and money. Here Kate from KKB Services, one of our legal INsiders shares some vital information.
Starting a small business without addressing legal matters upfront can lead to unforeseen complications. Therefore, it’s important to have the right legal documents and clauses in place from the beginning to safeguard your interests and ensure smooth operations. But do you know which key legal documents and clauses are essential? More importantly, are they already implemented in your business? If not, read on.
If you have a limited company with multiple shareholders, a shareholders’ agreement is essential. This document outlines shareholders’ rights, decision-making processes, and other important factors. It’s vital to establish this agreement early on to avoid disputes that can be costly in terms of time and money.
Employing staff requires a well-drafted employment contract. This contract sets out an employee’s responsibilities, holiday entitlements, sickness policies, and other necessary details.
Some of the important clauses to include in your business’s legal documents are non-compete and non-solicitation. Non-compete will prevent an employee from setting up a business in competition with yours or working for a competitor. But remember this clause must be drafted reasonably for it to be enforceable. Non-solicitation should be present in client and sub-contractor agreements. One of the important purposes of such a clause is to prevent your sub-contractors from working directly with your clients and bypassing your business.
To delve deeper into these key points, along with understanding confidentiality, intellectual property, and website compliance, explore our blog – “The Key Legal Documents Every Small Business Should Have.” Benefit from the insights and experience of lawyers with a combined 30 years of expertise.