Essential contracts and agreements every new or growing business will need

Last updated on June 9, 2023

Regardless of whether you’re a novice business owner or a seasoned one, you can’t deny the fact that documents play a prerequisite role in safeguarding the interests of the business over a long period of the lifetime of the organization. A business can’t function without a few business documents. It requires a certain list of documents to buy services, sell products, communicate, and know how to be more efficient in managing your business. 

If you’re new to the field of business, you must be looking for the ideal contracts and agreements that your business might need. Check them out. 

• Employment Offer Letters

Being the owner, you would leave no stone unturned to keep misunderstandings and other legal liabilities away from your company. The best way to protect your business from these is through employment offer letters. You should issue them to the employee, who will then be asked to sign them. This will be the only evidence of the employer-employee relationship between both parties. Here are what a good employment letter entails:

• The job offer
• Job responsibilities
• Salary and benefits
• That the job is ‘at will’ and the employee might quit or the employer may terminate
• That any disputes can be handled through binding arbitration
• Operating agreements for LLC

Though not mandatory in most states, if you have a Limited Liability Company or an LLC, you will need to have an operating agreement. This is more applicable when there are several members involved in the business. The operating agreement mentions the functional and financial decisions of the LLC. With multiple members, it becomes important to define how vital commercial decisions should be made. All these can be decided through such an agreement. 

• Employment contract

An employment contract sets the expectations and liabilities of a company and the employee so that there are no chances of discrepancies in the future. An employment agreement is not necessary for every hire but it can be useful when you want to avoid new employees from leaving your organization too soon. However, make sure the contracts are reviewed by an experienced employment law attorney. To know more about business contract lawyers, check this website. 

• Business plan

This can’t be considered a legal document but this is mandatory whenever you wish to get funding or you want to sell your business. Depending on the size and terms and conditions of your business, your business plan can either be one page or of hundred pages. No matter what, it should offer clarity to your business roadmap. 

• Online privacy policy

Whenever you gather information from your website visitors and customers, you will need to post your business privacy policy. This privacy policy agreement entails how the details should and should not be used. 

So, before you jumpstart a business, you have to ensure you have drafted all of the above-listed agreements and contracts. If you need help, you can get in touch with an attorney as they are experienced in designing the most binding business contracts.