What Documents are Required to Start a Small Business?
Starting a pet care business is exciting but what’s not so thrilling are the legal documents you have to complete as part of the process! Having the right documents correctly filed ensures there’s a legal backbone to your pet business so it’s a necessary step in your entrepreneurial journey.
Keep reading to learn more about the legal documents you’ll need to start your pet business as well as different resources to make the process a little easier.
This article does not constitute legal advice. If you are starting a small business and need advice about legal filings you should consult an attorney.
5 legal steps required to start a small business.
If you’re starting a small business, there are a few legal steps to follow when you’re first getting started. The steps below are general so there may be a few more depending on your location.
1. Choose a unique name.
Choosing your business name is a fun and creative experience. Try to pick one that suits your brand and is something people will remember because when you start to market your business, you’ll thank yourself for choosing something catchy as well as unique.
Before finalizing your business name, do a trademark search to make sure the name isn’t already registered or in use by another business. This can be done through the United States Patent and Trademark Office (USPTO) database or other trademark databases if you are outside the US.
This is important because if a name has already been trademarked, you can’t use it for your business.
2. Choose your business structure.
The business structure will decide how your business will be taxed, your personal liability, and other legal obligations. Here are the options you have to choose from:
- Sole Proprietorship
- Partnership
- Limited Liability Company (LLC)
- Corporation
- S Corporation
- Nonprofit organization
It’s important to do your research into each of these to determine which one suits your business. If you’re unsure, you can speak with your accountant to see which is the best option for you.
3. File organizational documents to the Secretary of State.
Once you’ve chosen your business structure, you need to file the appropriate documents with the Secretary of State’s office in the state where you’ll be operating. We’ll discuss those more later.
4. Pay state filing fees.
When you file your organizational documents, you have to pay a filing fee, which varies by state and business structure. The Secretary of State’s office should have prices listed but in general, it should be less than $300.
5. Apply for a tax ID (EIN).
If you’re in the US, you can apply for a tax ID or EIN through the IRS website. This essentially acts as a Social Security number for your business and ensures you’re paying the appropriate taxes to the IRS.
It is completely free to apply for an EIN and is an easy process on the IRS website. If you are outside of the US, you will need to apply for the equivalent business tax ID.
What legal documents should you prepare before starting a small business?
Detailed below are the legal documents you’ll need to get before starting a small business. It can be overwhelming at first but just take one document at a time until you have all of them ready.
Articles of Organization (or Incorporation).
Articles of Organization and Articles of Incorporation are foundational documents that legally establish a business entity. The terminology and specific requirements can vary by state and business structure.
These documents should be filed with the Secretary of State and typically include:
- The business name
- The address
- A person who can receive legal documents on behalf of the business
- Who manages the business
- The start and end date (if applicable, as most businesses will not have an end date)
- What the business intends to do/what services they plan to provide
Different states might use different terms for these documents, even though they’re essentially the same thing. For example, Texas calls it a Certificate of Formation, and some states will casually call it a Charter (though this is not the technical legal name).
Samples of Articles of Organization.
Articles of organization typically look different per state, but some state websites give examples:
SS-4, Application for Employer Identification Number (EIN).
An SS-4 is also necessary for a business, as this gives them a number to fill out when paying and claiming taxes so the IRS can identify the business. Just as every person needs a taxpayer ID, so do businesses and this does not vary by state, as it all goes straight to the IRS.
Sample EIN application.
The IRS has forms available on their website as well as videos and instructions to ensure you can correctly and comprehensively fill the form out.
Operating agreements or by-laws.
Operating agreements and by-laws aren’t typically filed with the state, but are documents to say how a business will be run so everyone is on the same page internally. These can look very different from business to business but generally involve defining things like:
- What ownership and management look like
- How profits and losses are allocated among members
- Voting rights
- The dissolution process
Sample operating agreement.
LLC University has a free operating agreement available on its website, so you can know what to expect when creating yours.
Contracts and service agreements: 4 examples.
There are multiple other documents a business may need internally, including but not limited to the following contracts.
1. Vendor contracts.
Vendor contracts are important for pet businesses because they define expectations when buying resources from suppliers. Take a pet grooming salon, for example—they buy all sorts of things like special shampoos, grooming tools, cleaning supplies, and other pet care products.
These contracts spell out exactly what's being bought, like what's in those shampoos or how tough those grooming tools are. They also define the prices, whether there are discounts for buying in bulk, and when and how payments are made—like right away or on a schedule.
Plus, these contracts make sure everything meets safety standards for pets and cover what happens if there's a problem with a product. If things change or better options come up, there are rules for ending the contract too. Having solid vendor contracts helps pet businesses keep their supply lines smooth and ensure they're giving top-notch care to their furry clients.
2. Real estate contracts.
Real estate contracts are a big deal for pet businesses because they define how you can run your grooming salon or doggy daycare business in that space. These contracts cover things like whether you can make changes to the property, like putting up signs or modifying the interior layout to better suit your business needs.
Additionally, just like with renting an apartment, these contracts lay out how long the business can stay there, the payment terms and what happens if you want to move out or renew the lease when the contract ends. These contracts make sure everything’s clear between the business and the property owner, so there are no surprises down the road.
3. Customer contracts.
Customer contracts are super diverse for pet businesses because they spell out what the business will do for their customers and what’s expected in return. Whether it’s a pet grooming service, a dog training program, or a pet sitting arrangement, these contracts cover all the bases.
They detail exactly what services or products are being provided, like the type of grooming or training methods used, or the specific care routines for pet sitting. Pricing terms are laid out too, whether it’s a one-time fee, a package deal, or hourly rates for services.
Payment terms are clear—whether it’s upfront, in installments, or after the service is complete—and what happens if there’s a delay in payment.
4. Employee contracts.
Employee contracts outline the specifics of the job, like what duties employees are responsible for after onboarding—whether it’s grooming pets, managing daycare activities, or handling administrative tasks.
Compensation details are usually spelled out, whether it’s hourly wages, salaries, or commission-based earnings, ensuring everyone knows what to expect in their paycheck. Benefits, like health insurance, retirement plans, or pet care discounts, are included in these contracts too.
Website privacy policy and terms.
Having a website for your pet business is great for visibility and customer convenience, but it also means you'll need a privacy policy and terms of use page. These pages outline the rules and expectations users must agree to when visiting and interacting with your site.
The privacy policy explains how you collect, use, and protect any personal information gathered from visitors, such as names, emails, or payment details, ensuring compliance with data protection laws. It also covers how cookies and other tracking technologies are used to enhance user experience and collect analytics.
Terms of use, on the other hand, specify how visitors can use your website, manage their accounts, and interact with content. This includes guidelines on acceptable behavior, intellectual property rights related to your site's content, and limitations of liability for any errors or inaccuracies.
These policies not only protect your business legally but also build trust with visitors by transparently outlining how their data is handled and setting clear expectations for their interactions with your website.
Liability insurance policy.
A liability insurance policy is a type of insurance coverage that protects a business against claims resulting from injuries and damage to people or property. This insurance covers legal costs and payouts for which the insured party would be responsible if found legally liable.
For small businesses, it’s important to have this protection to safeguard against potential financial losses from liability claims, which can be costly and potentially business-ruining.
When setting up a liability insurance policy, it’s best to talk to a legal expert. Insurance policies are negotiable, allowing business owners to work with insurance providers to get coverage that suits their specific needs and the unique risks they might face. Working with pets means it’s especially important to have pet business insurance in place, given that accidents can and do happen.
For instance, if a client slips and falls while dropping off their pet, or if a pet is injured during grooming, the insurance would cover the associated medical costs and potential legal fees. The policy might also cover property damage caused by pets under the business’s care, such as a dog damaging the property fence.
Organize your business with PetExec software.
Starting a small business is intimidating, and getting everything together that you need can be time-consuming. That’s why, at PetExec, we want to take the load off.
Our pet care business software ensures you can store documents, process payments, keep a record of everything, and book appointments. Everything is kept track of and filed away in case you should need them in the future for any sort of claim.
Ready to get started? Contact us today, or check out our website for a free demo.
Commonly asked questions.
What’s the first step in starting your own business?
The first step in starting your own business is coming up with the idea and doing market research. Before even getting to legal documents and paperwork, you need to ensure you have a solid foundation and a gap in the market to give yourself a real chance of success before you spend the time and money on legal expertise and documents.
Is it easy to start a business?
Starting a business takes time, commitment, and money, so many don’t find it easy to start a successful small business. However, if you put in the work and research, as well as consulting a legal expert, your chances of success are much larger.
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