Contracts every small business should have ready
Handshake deals feel friendly until something goes wrong. Then each side remembers a different deal. A few standard agreements, used every time, prevent most of that.
The core set
**Client or service agreement.** What you will do, by when, for how much, how changes are priced, when payment is due and what happens if either side ends it early. This one contract covers most service businesses.
**Independent contractor agreement.** If you bring in help, put the scope, payment and - importantly - who owns the work in writing. Without it, a contractor may own what they made for you.
**Non-disclosure agreement.** For sharing anything confidential with a partner, supplier or prospective hire.
**Operating agreement.** Between the owners of an LLC: who owns what, who decides, how profits are shared and what happens if someone leaves. It matters even for a one-person LLC.
**Terms of sale and a privacy policy.** If you sell online or collect customer details, your website should state your terms and how you handle personal data.
What makes a contract actually work
- **Plain words.** If your client cannot understand it, it will be argued about.
- **Specifics.** "A website" is not a scope. "A five-page site with contact form, delivered by June 1" is.
- **Payment terms.** Due dates, late fees if you charge them, and what happens to the work if payment does not arrive.
- **Change orders.** How extra work is requested and priced. Scope creep is the most common source of unpaid work.
- **A way out.** How either side can end the agreement and what is owed if they do.
Signing
Electronic signatures are valid for most business contracts. What matters is that both sides clearly agreed and you can show it later. Keep a signed copy where you can find it in a year.
Templates are a start, not an end
A good template saves hours. Read every clause and change what does not fit your business. For anything large, unusual or high-risk, a short review by a lawyer is cheap compared with the dispute it can prevent.