10 Essential Contracts for Every Small Business

By:  Roberto A. Ramirez with Law Office of Roberto A. Ramirez, PLLC 

Starting and running a small business often involves a staggering number of legal contracts.  Below are a list of essential contracts for small businesses.

1. Business Contracts – You need more than a handshake. Make sure it’s a done deal with a professional Business Contract. When it’s in
writing, it’s easier to prevent miscommunication because the details of your agreement are clearly outlined.

2. Service Contracts – Service contracts outline exactly what you will provide as a business. Service contracts are agreements for
specific acts, such as painting your house or tuning your car, and are distinguishable from contracts for goods.

3. Independent Contractor Agreement- Independent Contractor Agreements are a way of clearly outlining the scope of the work, payment schedules
and deadline expectations of a freelance arrangement. Make sure you have signed agreements with every
consultant or short-term employee you use.

4. Release of Liability – As an operator of a business, use this form to release your company from liability for any injuries or damages
sustained by a participant in an activity either owned or sponsored by your business.

5. Equipment Lease – Use this contract if you will be leasing equipment or plan to lease out your own equipment. You’ll want to
complete your equipment lease agreement before the equipment changes hands. That way, if either party has
any questions or concerns, you can refer to your lease agreement to resolve things.

6. Non Disclosure Agreement – Nondisclosure agreements are fairly common in many business settings, as they offer one of the most surefire
ways to protect trade secrets and other confidential information meant to be kept under wraps. Ask potential
employees or current employees to sign this so your proprietary information doesn’t leave your business.

7. Provisional Patent Application-  Protect your product or invention in advance of a full patent filing. A provisional filing allows you to use the
“Patent Pending” notice and establish an official patent filing date.

8. Noncompete Agreement- Noncompete Agreements are intended to help you protect your business. They restrict your employees, business
associates or clients from directly competing against your company.

9. Employment Agreement- This agreement between an employer and employee specifies the rights and obligations of each party. The
employee’s compensation, job duties, expense reimbursement, benefits, and confidentiality obligations may be
described in detail.

10. Employee Handbook- Employee Handbooks are an important part of your hiring package. They include necessary legal statements,
outline employment expectations, relate your business vision, and define benefit packages.

Leave a Reply