Whether you are starting a new business or have one already, here are important business protection documents and contracts you should know about. Many small businesses are starting or already operating without the proper contracts and/or the business protection documents that they need. Not having the correct contracts or business protection documents in place can leave you and your business open to liability and unprotected.
Business as is life in general, is unpredictable, and as a business owner you can and should protect yourself and your business in anticipation of unexpected events and circumstances. One of the ways you can prepare and protect yourself is getting the proper contracts and business protection documents drafted and in place.
Contracts are extremely important in business, there can be contacts between you and your partners, your customers/clients, service providers/vendors, employees, collaborators etc. Contacts are important because they outline what is expected by each party, when and how? Having this vital information and agreed upon in advance and in writing, avoids confusion and makes expectations clear. Another way contracts can be extremely helpful is outlining what happens if a relationship ends unexpectedly or prematurely, or in the event one of the parties doesn’t hold up their end of the contract.
When starting your business or even if you are in business already you should consider looking in to the following business protection documents and contracts if you don’t already have them:
- Operating Agreement: Used by LLC’s to outline how their business will be operating.
- Joint Venture Agreements: Used to outline the function, expectations and percentage of investments and percentage owned by each member of the business.
- Employee Contracts: Used to outline terms of employment, rate of pay, duties and expectation.
- Non-Compete Agreement: Used to outline terms after employment, termination or the premature exit of an employee, preventing them from creating competition for your business for the agreed time frame.
Non-Disclosure Agreements: Used to prevent employees, vendors/service providers or collaborators from disclosing unique information about your business disclosed while under the operation of the business.
- Meeting Minutes: Used to outline discussions, decisions and from business meetings with managers of the business. You can have template created specifically for your business.
- Client Service Contracts: Used to outline services, pricing, payment schedules, dates of service, expectations, the termination process ,and or reimbursement options (if any) between the servicer/ business and the client/customer.
Now that you have a pretty good list of what contracts and/or business protection documents you may need you may be asking yourself, Where do I get these documents? You always have the option of contacting a business lawyer or looking for templates on legal sites, however a great option is hiring a Legal Document Preparer (LDP). Legal Document Preparers can create and draft documents and contracts at a way more affordable rate than an attorney. Another reason LDP’s are a perfect fit for this type of work is that you can make sure that you are choosing the right documents for your business specific needs, instead of purchasing a generic template off of a website. A Legal Document Preparer can tailor, customize and create your contracts and business protection documents for you. The more specific your contact or document the better it will protect you.
If you are a business owner or thinking about starting a business, book a consultation with your trusted LDP below and get a head start at protecting your business.
Melissa Medina is a certified legal document preparer and independent paralegal with 17 years of experience in the field. She has been helping communities in the valley through legal issues in family law, personal injury, estate planning and more since 2020.
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