8 Contracts EVERY Business Owner Needs
Whether you’re a new or seasoned business owner, it is important to protect yourself. As a business owner you will have many different reasons to have contracts on hand. This could range from contracts for your customers/clients, for your business partners, potential investors, or even those you hire for a one-time job.
Figuring out what contracts you need and why can be very overwhelming. Lucky for you Bold City Legal has your back. We’ve conducted our top 8 contracts that all small business owners need. Let’s get started!
1. Non-Disclosure Agreements (NDA)
Looking for investors or partners but scared that they’ll steal your trade secrets or confidential information? NDAs are created to prevent this from happening, or at least create a legal remedy if someone sought to steal your trade secrets or confidential information. It is important before you share anything about your business to have whoever you’re disclosing the information to sign an NDA so that you and your business are protected.
2. Partnership Agreements
Regardless of if you’re a single business owner or partnered with someone else. It is important to have a partnernship agreement that will discuss the relationship between business partners and how the business will be ran.
3. Independent Contractor Agreements
Independent contractors are used by many if not most small businesses. An independent contractor agreement is crucial to set expectations, help ensure that a contractor is clearly designated a contractor and not an employee, and make sure that you still own any content that the contractor creates for you. Small businesses can use independent contractor agreements to obtain help from individuals like virtual assistants or other businesses. Need an independent contractor agreement? Check out our attorney drafted independent contractor agreement template. (Pss..it’s better than those free ones you’ve been browsing on Google ;))
4. Employee Agreements
At some point you will need to hire employees to help your business to continue to be a success. An employee agreement is important so that you and your employee are on the same page. This contract typically specifies salary, benefits, hours, vacation, and anything else pertinent to the employee working for you.
5. Non-Compete Agreements
Similar to an NDA, a non-compete agreement is important to protect you and your business. A non-compete agreement is created to ensure that an employee is prevented from engaging in business that will directly compete with you. This agreement typically defines a time period, location, and any other details necessary for you and your business to stay protected.
6. Service Contracts
This is important, especially for my freelance photographers, videographers, and event planners. It is important to have a service contract that outlines your specific duties and what the client or customer will be receiving in exchange for their payment. The last thing you want to do is be hired as a photographer only to be later accused of not providing video services as well.
7. Privacy Policy
It’s inevitable. You will collect private information from your clients and/or customers. Having a privacy policy on hand will outline your responsibilities has the collector of this private information and what you may use this information for. It will also notify your clients and/or customers of their rights under your privacy policy.
8. Release of Liability
Whether you rent out bounce houses, a photobooth or a venue–it is important to have a release of liability on hand for your clients to sign. This document will ensure that as a business your company will be released from liability for any injuries (or damages) that occur by a participant in an activity that was either owned or sponsored by your business.
Combining Agreements
While these are 8 of the contracts we recommend all small businesses have (or at least consider), sometimes they can be combined to minimize the number of documents. For example, we often include confidentiality language in independent contractor agreements that provides substantially the same coverage as an NDA.
We Can Help You Start
If you need some help figuring out what contracts you need and/or drafting them, Bold City Legal is here to help! With years of drafting experience, we can help draft contracts essential to protecting and increasing the success of your business. Click here to schedule an appointment today!
Thank you to Guerbrea Fort, a student at the University of Florida law school, and our summer law clerk for writing this article for us.
