4 Necessary Legal Documents for a New Business in San Mateo, CA

Starting a business always requires legal documents before its operation. In San Mateo, California, there are particular conditions to meet before acquiring a business license. These requirements need to be in document forms like permits, certificates, and other records for the local government to check if the business you are about to start will comply with the statutes and directives within that area.

Budding entrepreneurs must also prepare their legal documents for a business like tax records, file statements, and fill-out forms related to their enterprise. The first thing that a starting business owner can do is create a business plan and file for a business name. Afterward, entrepreneurs must contact the appropriate government agency of the area that you wish your business will be opened.

It may be exciting to start up a business. Still, it is wise to plan and prepare the legal documents for their business carefully to avoid unwanted circumstances like a restriction of business operation, monetary fines, or in worst cases, imprisonment. This may also apply to existing companies that require expanding their current enterprises.

Momentarily, you might come up with the business plan and the name of your company. Then, a designated department from the local government of the City of San Mateo, California, will require you to get some legal documents for a business. Acquiring these documents might take much time, so it is better to start getting them as soon as possible.

This article will see the most important legal documents for a business: 

Why does your business need those and how to acquire them.

You will also know some beneficial tips to implement in your industry.

By the end of this feature, you will be ready to start a business and get professional help to obtain the qualifications.

4 Legal Documents To Start a Business

1. Real Estate Lease Agreements

What is a Real Estate Lease Agreement:

It is a legal document or a business contract consisting of claims and rights between the landlord and the occupant. The agreement includes the details about the possession of a commercial property, how the lessee can maintain and use it properly, terms of payments, etc.

Why is it needed:

This legal document for a business, especially those who have a physical branch, can avoid legal disputes. Having a legal document about the terms and conditions of renting or leasing a property can reduce the chances of sudden unlawful changes, especially to the length of stay and the lease payment. In many cases, if a business has these papers, it would have no difficulty protecting both participants’ rights.

How to apply:

For some small arrangements, like renting a home or a little commercial space, they can write up a rental agreement independently. However, large industries or businesses should prefer consulting a professional to secure everything legally.

2. Partnership/
shareholder agreements

What is a Partnership Agreement:

It is a legal document of a business regulating the terms and requisites between two or more enterprise associates or shareholders.

Why is it needed:

Having a business partnership is not as simple as creating a close relationship with your friends. A partnership or shareholders agreement is necessary for every business because of its power to set arrangements whenever conflicts, change, or confusion between partners.

A partnership agreement could also help in avoiding tax issues and the proper distribution of profits. Additionally, some states require a legal document of partnership or shareholders’ contract.

How to apply:

As we have mentioned, a business partnership is not as mere as building friendships. Creating a partnership agreement without consulting a professional help or skipping the legal processes might be valid in the future. By getting an attorney, you and your partners will be guided to make a step in creating an authorized documented agreement.

3. Lien

What is a Lien:

A lien is legal evidence of a lender’s ownership over a business until the debt is already compensated. It is a right to hold possession until a particular demand will be satisfied. The liens’ principle may also be similar in providing a down payment for an availed project or service and waiting for the finalized output before wholly paying the cost.

Why is it needed:

It is a legal document of a business that serves as collateral or guarantee until the debt will be completed. Contractors and business owners find liens essential because they will have the certainty that both parties’ orders will be supplied.

How to apply:

A contractor or a business proprietor will sign a disclaimer that waives the particular terms and conditions in payment correspondence. Like in any other legal documents of a business, getting property specialists or lawyers can provide the best help for many companies or sprouting businesses.

4. Buy-Sell Agreement

What is a Buy-sell Agreement:

It is also known as a buyout agreement. It is a legal document of a business that provides terms and conditions if a co-owner dies, be permanently disabled, or leave the business. The buy-sell agreement is a binding contract that specifies the reassignment of an incapable business partner’s shares.

Why is it needed:

Similar to the essential legal documents stated above, a buy-sell agreement provides a guarantee and protection of the business’ welfare against personal bankruptcy, divorce, and creditors. It has the same principle as the so-called “premarital agreement” that sets a business’s condition beforehand.

Strong relationships and trust must be cultivated between business partners. However, we are living in uncertainty and must be prepared for future transitions. Importantly, buy-sell agreements have been applied to depreciate the taxations of estates.

How to apply:

In structuring a buy-sell agreement, the primary step is to create an initial valuation of the business and secure that the arrangement is adequately funded based on the business’s growth and tax adjustments. When composing this document, a business owner must consider the feasible circumstances that may have been required for a buyout.

What are the don'ts when starting a business?

A Must-Have Guidance

A Must-have Guidance | Carmen Rosas, Esq

We have already talked about the four crucial legal documents for a business. For a starting entrepreneur, it could be complicated as it seems. But we are sure that these legal documents for a business must be completed before opening a business.

You might think that you are capable enough to start on your own. Nevertheless, you might demand legal services or advice on drafting for and launching a new business. Where can you find the best assistance in starting a business?

Attorney Carmen M. Rosas in San Mateo, California, assists aspiring entrepreneurs to start a business. She developed her legal skills and started working with three leading law firms. She is an experienced and goal-driven business lawyer who helps business owners run their enterprises and meet their goals.

Taking business planning sessions with Attorney Carmen Rosas can help you form your business entity and prepare legal documents to launch a new business. She can also be of assistance in legally validating negotiations, contracts, writing agreements, and draft documents.

The Law Office of Carmen Rosas provides business planning services like trademark application assistance that includes searching for business names, communicating with USPTO attorneys through publication, and filing the application.

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