5 Most Common Small Business Contracts

As a business owner, it’s important to have a solid understanding of the various types of small business contracts that you may need to use in the course of running your business. It’s important to have quality contracts in place to protect your interests. But what does it cost to have a lawyer draft these contracts? Read on to find out the answer to this question and more.

In this post, we’ll review:

the most common types of contracts small business owners will need
the average cost of having them drafted
an option for attorney drafted templates

Here are five of the most common contracts that all small businesses should be familiar with.

1. Website Terms of Use Agreement

If you are doing business online (and you should be), you want to tell visitors how they can use your site. A website terms of use provides rules that a user must abide by when using the website. The website terms of use is good for those with online memberships, downloadable content, videos, and/or recordings that are accessed through the website. You should use the website terms of use to limit liability from errors, protect content, and prevent abuse and discrimination.

2. Non-Disclosure Agreements (NDAs)

If you have any employees or contractors who will have access to sensitive information about your business, then you’ll need to have NDAs in place. These agreements prevent the disclosure of confidential information and trade secrets. You should have NDAs signed by anyone who will have access to this type of information, including employees, contractors, vendors, and consultants.

3. Independent Contractor Agreement

If you contract out any services for your business, then you will need to have contracts in place to hire contractors. An Independent Contractor Agreement controls the terms of the service relationship, including things like scope of work, compensation, and timely delivery. When hiring contractors such as graphic designers, virtual assistants, or content providers you should ensure this contract is in place before work starts and you should keep them on file for the duration of the relationship.

4. Service & Product Contracts

If you sell any products or services, then you will need to have a contract for the services you provide to your clients. The service agreement will explain the terms of the sale, including things like price, quantity, delivery date, and warranty information. Clients should sign these contracts before they make a purchase, and you should keep them on file for your records. Depending on the method of the sale, these contracts can be done via click-wrap agreement on your website, or as signed contracts that are sent via electronic signature portals. Either way, it is important that you have documentation of what you agreed to provide, who you agreed to provide it to, and for what price.

5. Website Privacy Policy

A website privacy policy is a contract between you and the people who access your website. It tells people how and why you utilize data. Many states, including California, require you to have a website privacy policy when you collect data such as names, email addresses, phone numbers, and location. Many third-party services such as Google Analytics require you to have a privacy policy as well. U.S. Federal and State privacy laws require that you give individuals control over their information. This means that you provide options for people to opt out of data collection and even have their data deleted upon request.

The Average Cost of Having a Lawyer Draft Small Business Contracts

The answer to this question depends on a number of factors, including the lawyer’s hourly rate, the complexity of the contract, and the amount of time it takes to draft the contract. For example, a simple non-disclosure agreement may only take a few hours to draft, while a more complex contract such as an employment agreement may take several hours or even days to draft.

Other factors that can affect the cost of having a lawyer draft small business contracts include whether you already have a template for the contract, whether the lawyer is drafting the contract from scratch, and whether you need multiple revisions of the contract. In general, you can expect to pay anywhere from $1,500 to $5,000 for a lawyer to custom draft a small business contract.

Another Option for Small Business Contracts

Ideally, you’d want your contracts to be tailored for your business specifically. That’s where retaining legal counsel is key. But, we all know business budgets may differ. Templated contracts are plentiful on the internet, so it’s essential to trust the person drafting those templates. That is why Attorney Shahara Wright, launched Contracts Done Wright! Contracts Done Wright provides attorney drafted templates for small business owners and nonprofits who cannot afford to have a custom contract drafted.

This article provides general information.
This article does not provide legal advice about specific legal problems.
Consult an attorney about your particular situation.