A Convertible Note is debt from a company that will convert to equity. Businesses often issue convertible notes to investors, when investors contribute funding and receive equity in a company as a result.
Corporate Minutes are the official records of managers and officers. Minutes define the specific topics and actions discussed in formal meetings. For many states, this is a requirement of corporations.
A Demand Letter is a letter sent requesting payment or restitution before taking legal action. Demand Letters are typically sent seeking money owed, to resolve the matter before going to the court system.
A Non-Disclosure Agreement, or NDA, is a contract between parties to restrict the sharing of certain information. NDAs can apply to all parties or a singular party. This does not cover illegal activities.
A SAFE agreement, also known as a Simple Agreement for Future Equity, is the agreement of investment in exchange for equity in the company at a later date, often after a more accurate valuation of the company.
Terms and Conditions are the set of rules that are agreed to by a service provider and user. The user must abide by these rules in order to use the service. Every website should have terms and conditions.
As the name implies, an Employee Drug and Alcohol Policy dictates the company’s stance on alcohol and drug abuse. This policy can also include pre-employment drug testing, reasonable suspicion drug testing, and post-accident drug testing.
An Anti-Violence Policy states the company’s policy on violent or hostile behavior in the workplace. This policy could categorize violent or hostile acts as: causing physical injury to another person, making threatening remarks, creating reasonable fear of injury in another person, damaging property, and possessing a weapon on company grounds.
An Independent Contractor Agreement is the contract between an independent contractor and an employer that details the work to be done as well as payment. Independent contractors ae not given the same benefits as employees, and must pay their own income tax and liability insurance.
An Employment Contract is the agreement signed to finalize the terms and conditions under which an employee will work. The Contract will outline pay, benefits, and any other terms included by the employee or employer.
Officer Contracts are the specific contracts between a corporation and its corporate officers. Since corporate officers may have different pay structure, benefits, and responsibilities, Officer Contracts may be needed.
Advisor Agreements dictate the terms of an advisory position with a company. Unlike a consultant, an advisor would take on a larger role in the company and work for an extended period of time, which would be specified in the agreement.
You can draft your own contracts, and business owners do opt to do it themselves sometimes. However, for a contract to be legally binding, there has to be specific language in place that dictates exactly what is being agreed upon. Also having a contract drafted by an attorney affords more credibility and legitimacy to a business.
How do I know what contracts I need for my business?Zachary Hanby2021-04-22T14:35:38-04:00
Contracts can be industry-specific and certain businesses will need more than others. The best way to know exactly what your business needs is by speaking with an attorney about your business plan. From there, the attorney can help you map out exactly what contracts you might need along the way.
Are contracts necessary to run a business?Zachary Hanby2021-04-22T14:38:08-04:00
Contracts aren’t always necessary but those who are serious about running their business know that the more you can have in writing, the better. Contracts hold you and those you are working with accountable in a way verbal agreements can’t.
A contract is an agreement between parties that creates mutual obligations that are legally binding. When speaking about contracts, most people are referring to written agreements rather than verbal ones. From a legal standpoint, written contracts are much more viable and enforceable, which is why it’s the preferred method for businesses.