The Entrepreneur's Starter Pack: 5 Docs You Shouldn't Launch Without

Alexandria is a haven for small business and microenterprise! Starting your dream business is exhilarating and exhausting, and often the boring details, like the legal paperwork are not a priority. I get it, no one likes dealing with attorneys. But here's the thing: these five essential documents are incredibly important. They're the difference between a smooth-sailing venture and a legal nightmare. Let's talk about what you absolutely need before you hang out your shingle and create that Shopify store.

1. Articles of Incorporation or LLC Operating Agreement: There are benefits and protections that are essential to protecting you personally that are contained in these documents! If you're forming a corporation, you'll need Articles of Incorporation. Going the LLC route? You'll want an Operating Agreement.

Why you need it: This document officially creates your business as a separate legal entity, which means your personal assets (your house, car, savings) are generally protected if your business faces legal trouble. Without it, you're operating as a sole proprietorship, and your personal assets are on the line.

What it should include:

• Your business name and purpose

• Ownership structure and member/shareholder rights

• How decisions are made

• What happens if someone wants to leave the business

• How profits and losses are distributed

2. Terms of Service and Privacy Policy: These documents are not just legal mumbo jumbo; they're your shield against customer disputes and regulatory headaches. Don't copy and paste these from another website. Each business is unique, and generic templates can leave you exposed. Invest in properly drafted documents that actually fit your business model.

Why you need them: Terms of Service protect you from unreasonable customer demands and limit your liability. Privacy Policies are legally required if you collect any customer information.

What they should cover:

• How customers can use your website or services

• What you do with customer data

• Your refund and cancellation policies

• Limitation of liability clauses

• Dispute resolution procedures

3. Client/Customer Service Agreement: This document sets expectations, defines deliverables, and most importantly, ensures you get paid. Get a template agreement created that you can customize for each client rather than starting from scratch every time. This saves time and ensures consistency across all your customer relationships.

Why it's crucial: Without a clear agreement, you're vulnerable to scope creep, payment disputes, and unrealistic customer expectations. 

Essential elements:

• Detailed description of services or products

• Payment terms and schedule

• Project timeline and milestones

• What happens if either party needs to cancel

• Intellectual property ownership

• Limitation of liability

4. Independent Contractor Agreement: Planning to hire freelancers, consultants, or part-time help? This document clarifies that these workers are contractors, not employees—a distinction that can save you thousands in taxes and benefits, and makes sure they plan financially and understand their role too.

Why it matters: The IRS takes the employee vs. contractor classification seriously. Get it wrong, and you could face hefty penalties, back taxes, and benefit obligations. This agreement helps establish the contractor relationship properly. The IRS looks at how you actually work with them too. Contractors must have control over how they complete their work, use their own tools, and should not be treated just like employees.

Key provisions:

• Clear statement of contractor (not employee) status

• Scope of work and deliverables

• Payment terms

• Confidentiality requirements

• Who owns the work product

• Termination clauses

5. Business Insurance Policies (Yes, They're Legal Documents Too!)

Insurance policies are legal contracts that can make or break your business when disaster strikes. General liability insurance is the bare minimum, but depending on your business, you might need professional liability, cyber liability, or errors and omissions coverage.

Why you absolutely need this: One lawsuit, one data breach, or one accident could wipe out everything you've built. Insurance is your financial safety net and often a requirement for working with larger clients or renting commercial space.

Types to consider:

• General liability (covers accidents and injuries)

• Professional liability (covers mistakes in your work)

• Cyber liability (covers data breaches and cyber attacks)

• Directors and Officers (if you have investors or a board)

These five documents aren't just paperwork—they're the foundation of a legally sound business. Yes, getting them drafted properly costs money upfront, but it's a fraction of what you'll spend if something goes wrong without them. Protect your business so you can focus on what you do best. Don't try to DIY these documents with free templates from the internet. Invest in working with an attorney. It's an investment in your business's future. Get these documents right from the start, and you'll sleep better knowing you’re on solid legal ground.

Family First Law is happy to consult with you and assist you with the process.

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