7 Must-Have Contracts Every Entrepreneur

Starting a business is an exciting journey filled with opportunities and challenges. However, it can also be scary as well! For entrepreneurs, both newbies and veterans, every decision can significantly impact the future of their venture. One often overlooked, yet crucial aspect of building a successful business is ensuring you have the right contracts in place. Knowing that you have your essential contracts not only protects your brand, but can also give you a peace of mind and relieve some of the stress from entrepreneurship. 

Before we begin, here’s our quick shameless plug: Spring Up Legal Locker is more than just your average online contract template company, it’s a place where entrepreneurs, creatives and artists can shop easily customizable attorney-drafted Contracts, Guides, Checklists and more for a fraction of the BIG LAW FIRM costs. Overall, we understand the importance of making solid legal agreements available at affordable rates.

Now, back to our regularly schedule program, this blog post outlines seven must-have contracts that every entrepreneur should have in their arsenal, ensuring your business is protected and poised for growth.

1. Operating Agreement/Bylaws: If you're starting a business with one or more individuals (or entities), an operating agreement (for LLCs) or Bylaws (for Corporations) is essential. These agreements outline each members’/owners' responsibilities, profit-sharing arrangements, and procedures for resolving disputes or dissolving the business. Without a clear operating agreement/Bylaws, misunderstandings and conflicts can arise, potentially jeopardizing the business.
2. Non-Disclosure Agreement (NDA): Protecting your intellectual property and sensitive business information is vital. An NDA ensures that anyone you share confidential information with, whether it's a potential investor, employee, or contractor, or even a friend/family member is legally bound to keep it confidential. This contract is crucial for safeguarding your business ideas and strategies from being disclosed to competitors.
3. Profit Sharing Agreement: This agreement is a contractual arrangement between parties where the profits generated from a business venture are distributed among both parties. This Agreement includes important items such as the duration, services, obligations, commission percentage, insurance and more...
4. Independent Contractor Agreement: When working with freelancers or contractors, an independent contractor agreement is essential. This contract specifies the scope of work, payment terms, and deadlines, ensuring both parties are on the same page. It also clarifies that the contractor is not an employee, which helps avoid potential legal complications related to employment status.
5. Master Service Agreement: If your business provides services, a service agreement is a must. This contract outlines the services you will provide, the terms of delivery, payment details, and any guarantees or warranties. Having a service agreement in place ensures that both you and your clients have a clear understanding of the expectations and obligations, reducing the risk of disputes.
6. Work For Hire Agreement: For businesses hiring individuals to create some sort of work for your business, a work for hire agreement is crucial. This contract details the terms of the sale, including pricing, delivery, and return policies. This is a legally binding agreement where one party pays another to create a specific work, with the resulting product owned by the hiring party. This Agreement outlines the scope of work, payment terms, the work, ownership rights and more...  minimizing the risk of misunderstandings and legal issues.
7. Cease & Desist Letters: C&D letters are “good-to-have” handy letters just in case your business has to deal with either a slander/libel, breach of contract, copyright or trademark issue. These letters outline the issue at hand, requested action/potential remedies and next-steps if the actions aren’t met.

So, as you can see, having the right contracts in place is a foundational aspect of running a successful business. These seven must-have contracts not only protect your interests but also provide a clear framework for your business operations, helping you avoid potential legal pitfalls.

At Spring Up Legal Locker, we offer more than just customizable contract templates tailored to the unique needs of artists; we also provide useful Guides and Checklists to help you focus on your creative work, while ensuring your legal interests are protected. Don't leave your artwork's future to chance—embrace the power of contracts and let your creativity flourish without worry.

BTW, Still looking for additional info? Visit ourblog regularly for insights on this and related topics. Also, don’t forget to explore our extensive collection of attorney-drafted contract templates and contract packs for your next project!