Launching a new business can be very exciting. It gives you the chance to be your own boss and get involved with something you are passionate about. However, it doesn’t come without challenges.
You’ll want to ensure that your business is legally protected. One of the most useful ways to do this is by utilizing well-drafted contracts. Contracts are written documents that outline the rights of both parties in addition to outlining their obligations. Here are two essential contracts that start-up businesses need to have.
An operating agreement
The culture of a company starts at the top. Owners and high-level management need to know exactly where they stand. An operating agreement can do this. It’s a type of contract that puts all the founders of the company on the same page. It outlines specific roles and responsibilities, and it can also provide conflict resolutions options.
If you expect your business to expand, then your team of employees is likely to expand with it. Managing employees isn’t as simple as bringing in the best talent. All employment relationships should be founded on contracts.
Contracts can outline salaries, vacation entitlements, schedules, training access and notice periods if applicable. They are a tool to protect both the business and its workers.
A contract is only as good as its terms. Getting these terms right is not easy on your own. To get the most out of your contracts, it will benefit you and your business to seek experienced legal guidance. Contact us for a consultation.