Whether launching a new startup or growing an established business, having the proper legal documents in place is essential. Contracts don’t just protect you in case something goes wrong; they help set clear expectations and build trust from the start. Here are three essential contracts every small business should consider:
If your business has more than one owner, this contract is crucial. It outlines decisions, how profits and losses are shared, and what happens if an owner wants to leave the business. A formal agreement protects everyone’s interests and helps prevent misunderstandings, even if you're working with friends or family.
2. Employment or Independent Contractor Agreement
Hiring help? It’s essential to clarify the scope of work, payment terms, intellectual property rights, confidentiality, and termination terms. These contracts help your business comply with labor laws and protect against misclassification risks.
3. Client or Service Agreement
This is the foundation of any business relationship. A well-drafted service agreement outlines what you’re providing, when it’s being delivered, how payments are handled, and what happens if either party wants to cancel. It also helps avoid disputes by making expectations clear from the beginning.
Every business is unique, and contract needs may vary depending on the industry and goals. Having a trusted legal partner to help draft or review your documents can save you time, money, and stress in the long run.
If you have questions about contracts or need help protecting your business, our firm is here to help.
Kelsey Greene, Law Clerk, BridgehouseLaw LLP, Charlotte, NC
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