Business Contracts Every Small Business Should Have

small business owner with contractSmall business owners are busy professionals with a long task list. Often lost on the to-do list is securing the contracts that contribute to long-term success—and prevent negative legal issues later. Fortunately, the task doesn’t have to be cumbersome if the right legal professionals are consulted. Note, too, that there is value in consulting a local lawyer knowledgeable in local regulations.

This list of business contracts is not inclusive; there are other business contracts necessary for day-to-day operations. To get a comprehensive list and customized contracts, contact an experienced business lawyer.

Partnership Agreement

Drafting a Partnership Agreement is an important step in starting a business (including choosing an entity, more information here) that can have long-term ramifications. A Partnership Agreement is between all parties that invest in a business and should include the financial details, rights, and responsibilities.

The Partnership Agreement should detail the parties involved in the business, how profits and losses are handled, steps to be followed if a partner wants to leave the business, duties of each party, conflict resolution steps, and any process information for adding a partner. Because the details in the document need to be as specific as possible, contact a lawyer to draft this important contract. The absence of a Partnership Agreement may lead to serious conflicts and legal situations that could have been prevented.

Independent Contractor Agreement

Outsourcing services is an essential step for most small businesses. After all, there are some processes that make more financial sense to outsource as opposed to hiring an employee (and incurring those costs). In addition to independent contractors, this contract can also be used to short-term employees and consultants. An Independent Contractor Agreement details the exact nature of the relationship and that the business is not responsible for financial and tax obligations incurred for an employee.

Employee Offer Letter

Hiring an employee is a process that should be formalized before the first employee is hired. This eliminates any situations that can turn into a headache later, both legal and financial. An Employee Offer Letter explicitly spells out the details of the job, such as the position title, responsibilities, and finances. “At will” language should be included to indicate that the position can be terminated by the company or employee. The Employee Offer Letter should also specify other details, such as conflict resolution and that a Confidentiality Agreement should be signed.

Confidentiality Agreement

A Confidentiality Agreement is a vital part of business asset protection. This contract ensures that business proprietary information is kept confidential. This document should be signed by any party (employee or otherwise) that needs access to proprietary information or may develop products, strategies, or services that may become proprietary.

The materials on this website are provided for informational purposes only and do not constitute legal advice. These materials are intended, but not promised or guaranteed to be current, complete, or up-to-date and should in no way be taken as an indication of future results. Transmission of the information is not intended to create, and the receipt does not constitute, an attorney-client relationship between sender and receiver. You should not act or rely on any information contained in this website without first seeking the advice of an attorney.

20+ Reasons Your Business Needs a Lawyer

business owners shaking over contract that a lawyer draftedA successful business is started and run with more than just in-depth knowledge of the selected industry. Legal knowledge is an integral part of start-up and day-to-day operations, saving the business from the expenses of a legal mistake or a legal action.

An experienced local business lawyer can be invaluable in many different situations, from navigating local Wisconsin zoning laws to resolving contract disputes. The list of situations that lawyers can assist with are long. This list of legal issues are just a few reasons to contact a lawyer to resolve conflicts and avoid the proverbial legal hot water.

  1. Starting a business (entity selection such as a LLC, LLP, C Corp, etc.)
  2. Purchasing a business
  3. Strategic legal and tax planning
  4. Operating agreements
  5. Drafting and editing by-laws
  6. Change of entity
  7. Buy-sell agreements
  8. Buy-back agreements
  9. Redemption agreements
  10. Drafting legal contracts
  11. Contract disputes
  12. Business torts
  13. Sale and acquisition of business assets and/or a business entity
  14. Business merger
  15. Dissolution of business entity
  16. Distribution of business assets to creditors and stakeholders
  17. Business succession plan
  18. Farm succession plan
  19. Property rental agreements
  20. Land rental contracts
  21. Collecting unpaid bills and debts
  22. Terminating a business

The materials on this website are provided for informational purposes only and do not constitute legal advice. These materials are intended, but not promised or guaranteed to be current, complete, or up-to-date and should in no way be taken as an indication of future results. Transmission of the information is not intended to create, and the receipt does not constitute, an attorney-client relationship between sender and receiver. You should not act or rely on any information contained in this website without first seeking the advice of an attorney.