As a small business owner, it’s important to have legal contracts in place to protect yourself and your business. Legal contracts not only protect the business owner but also the customers or clients that they work with. There are five key legal contracts that every small business should have:
- A contract with your employees
- A contract with your freelancers or independent contractors
- A contract with your customers or clients
- A contract with your partners or investors
- A contract with your collaborators
Each of these legal contracts serves a specific purpose in protecting your business. Let’s take a closer look at each one.
Employee Agreement
An employment contract is a legal agreement between an employer and employee that outlines the terms and conditions of the employment relationship, including pay, hours, and benefits.
This contract protects both the employee and the employer, and can help prevent legal disputes down the road. Make sure to have an employee contract in place before you hire your first employee to avoid any misunderstandings or conflicts down the road. \
Independent Contractor Agreement or Freelance Contract
This agreement sets out the terms of the working relationship between the business and the independent contractor. It outlines the scope of work, compensation, confidentiality, and other important details.
This type of agreement is needed when hiring freelancers to help you grow your business online, such as graphic designers, website designers, blog post writers, SEO editors, and others.
Any time you hire a freelancer, make sure to use this contract to protect your business.
Client Agreement or Terms and Conditions
This is a legal agreement between a business and its customers that outlines the terms and conditions of the relationship.
A contract with your customers or clients establishes the terms of the sale or service, including pricing, delivery, and satisfaction guarantees.
Terms and conditions are the legal agreement between you and your customers or clients. They outline the rules and regulations for using your products or services. This type of contract is important to have in place to protect your business from liability.
This contract protects your business by clearly defining the expectations and obligations of both parties. It also helps protect you in the event that there is a dispute about the purchase.
Partnership Agreement
A contract with your partners or investors lays out the terms of your business partnership or investment, including how profits will be shared and what happens in the event of a dispute.
A partnership agreement is essential for any business that has more than one owner. This contract sets out each partner’s responsibilities, ownership share, and profit sharing.
It also outlines what happens if a partner wants to leave the business, how new partners can be brought in, and what happens in the event of a disagreement.
This agreement helps prevent legal disputes between the partners and keeps everyone on the same page.
Sponsorship Agreement
A sponsorship agreement is a contract between a sponsor and a small business. The sponsor agrees to provide financial or other support to the small business in exchange for promotional opportunities.
Brands that pay bloggers or influencers to create sponsored content for them frequently use this type of agreement. Use a proper Sponsorship agreement to ensure that you are paid on time and that the details of the work agreed upon by both parties are outlined.
Legal contracts for small businesses are an important part of running a successful business. By having these legal contracts in place, you can protect yourself and your business from legal disputes and other problems. So, make sure to get your legal contracts in order today!
