Every Texas startup needs to have certain legal documents in place to protect the business from issues that could arise in the future. However, it isn’t enough to just have the right documents; they also need to be legally binding and customized to fit your business’s needs and goals. Ensuring you have all of the right legal documents can help you be proactive instead of reactive, especially as the business grows.
So, if you have established a new startup, you should consult with a Texas startup lawyer to determine what documents you need. A business formation attorney will have experience with Texas laws and can ensure your LLC is operating legally and effectively.
Keep reading to find out what startup legal documents you need with this legal checklist for small businesses.
Formation Documents
At the core of every startup are the formation documents that will establish your business as a legal entity. Formation documents are necessary for compliance as well as providing structure and governance for how the startup will run.
There are several formation documents you should have drawn up with specific details of your startup:
- Certificate of formation
- Operating agreement or corporate bylaws
- EIN registration
Because these documents are so crucial to the legal and operational side of your startup, you should get the help of a Texas startup lawyer when having these created. An attorney can ensure you use the right formation documents for your particular startup since they don’t always apply.
Founder and Ownership Agreements
As the founder of an LLC, you need to have a founders’ agreement drawn up, which will act as a contract that outlines your business relationships. The founders’ agreement should include things like rights, responsibilities, obligations, and liabilities of the founder.
For startups with multiple founders who hold ownership, you should also have an ownership agreement that goes into detail regarding the rights of the owners. This should include buy and sell provisions since it is very common for founders to come and go as startups evolve.
Intellectual Property Protection
Most startups are founded on innovation, creating valuable intellectual property that requires protection from the very beginning. Because of this, you need to prioritize startup intellectual property protection in Texas by having the right documents created.
Here are some examples of the different types of intellectual property protection documents you can use depending on your startup’s intellectual property:
- Confidentiality policies
- Intellectual property assignment agreements
- Non-disclosure agreements
Depending on the type of intellectual property, you also need to secure your protection rights for things like patents, trademarks, and copyrights with the state of Texas.
Compliance and Governance Documents
Compliance and government documents are the backbone of how startups run, dictating business processes and providing a legal safety net. With the right documents, you can prevent legal issues from coming up later on, as well as simplify many aspects of how the business runs.
The compliance and governing documents you need will depend on your startup’s unique needs, but here are some of the most common documents you should consider:
- Board of directors meeting minutes
- Registered agent information
- Licensing and permit records
Keep in mind that many details regarding compliance and governance should also be included in your startup’s operating agreement. And this is a legal document that LLCs should have whether they are owned by a singular founder or multiple founders.
Contracts Every Startup Should Consider
The majority of Texas startups should have a variety of contracts in place as a form of protection, as well as clearly outlining the relationships between different parties. These contracts provide mutually beneficial terms so that all involved parties know exactly what to expect.
Here are some examples of the different types of contracts you should have, depending on the needs of your startup:
- Independent contractor agreements
- Employment agreements
- Service agreements
- Client contracts
- Non-competition/non-solicitation agreements
Why Startups Should Work With a Business Attorney
The legal side of owning a startup can be very tricky for founders to navigate, as this is most likely not an area where you have a lot of experience. That is why it is always best to work closely with a startup business attorney in Prosper, TX.
A Texas startup lawyer will be up-to-date on Texas laws that govern startups, guaranteeing that you maintain compliance. They can also help you understand what legal documents you need to have and how they need to be formatted to prevent disputes and liability issues.
An attorney will assist you in customizing your LLC’s legal documents so that they fit your specific business goals and needs. This includes preparing your business documentation for future growth so that your startup can expand without running into legal issues.
FAQs
Does every Texas startup need an operating agreement?
Texas law does not require startups to have an operating agreement, but this is strongly recommended. It is also an important document for sole LLC owners to have, not just LLCs with multiple members.
What contracts should startups prioritize first?
When establishing your LLC, the first legal documents you should have in place are the founders’ agreement, operating agreement, employment agreements, intellectual property assignment agreement, and non-disclosure agreement.
When should a startup hire a business attorney?
Ideally, from the very start, before you ever begin drafting your legal documents. Having a Texas lawyer assist you from the very beginning can help you avoid making mistakes that could cause issues later on.
Do startups need trademark protection right away?
Yes, establishing trademark protection as soon as possible is essential for protecting your startup’s intellectual property. This includes establishing documents to protect privacy, such as confidentiality policies and non-disclosure agreements.
Get the Help of a Texas Startup Lawyer Today
Owning a startup in Texas can come with a unique set of challenges, especially when it comes to the legal side of running the business. That is why you should work closely with a startup business attorney in Prosper, TX, to ensure you have all of the necessary legal documents drawn up. Contact us today at Sewell Sewell Beard LLC by calling us directly at 972-777-5390 to discuss your situation with one of our Texas startup lawyers.