You may be called upon to negotiate agreements during the day-to-day operations of your business. Whether you compromise or hold firm, you probably will memorialize those agreements in the form of written contracts. In this article, we will look at some of the most common contracts you might use to keep your business going.
Business Contracts Related to Forming Your Business
For most business entities, you have to fill out paperwork. In Florida, you will file forms based on the type of business you are creating. However, other contracts are typically drafted and signed at this time.
- Partnership Agreements are contracts between two or more people who want to go into business together. As with all contracts, the language needs to reflect your agreement and be enforceable.
- Stock Purchase Agreements serve as contracts between stock purchasers and sellers. This may sound like a simple transaction, but it can become overly complicated.
- Buy-Sell Agreements can be signed at any point in the life of your business. However, the best time is usually at the beginning of your company’s existence. Your buy-sell provides guidance if one of your owners leaves the business for some reason.
Once your business starts up, you might start hiring employees. Here, again, is a time when well-drafted and enforceable contracts are necessary.
Employee-Related Contracts
Not everyone has employees sign employment contracts. However, setting your agreement in writing can protect both your employee and your business. Some of the common employee-related contracts are:
- Employment contracts that detail arrangements made between you and your employee.
- Non-disclosure agreements designed to prevent your employee from disclosing confidential company information.
- Non-compete agreements that may prevent your employee from stealing clients or jumping ship to a competitor.
As you build and manage your business, you will continue to encounter legal agreements. Having a business lawyer draft or review your contracts could save you from expensive legal disputes down the road.
Contracts for Your Business Operations
Sometimes the contracts you need for your business are not called contracts.
- Leases are contracts you sign for real property, office equipment, and vehicles. Provisions of legal agreements can tie you into relationships with no way out except buying out part or all of the lease. It is critical to understand the legal consequences in any document you sign for your business.
- Sales Contracts will be critical if your company’s purpose is to sell products to buyers. Your sales staff need to know what’s in the agreements, which provide pertinent details of your transaction.
- Service Contracts are similar to sales contracts. However, they relate to selling a service instead of a product and are just as important as sales contracts.
- Loan and Financing Agreements might be necessary at any time. For example, you may want to expand or just find that you need operating capital. If you are not careful, you may be locked into unfavorable terms.
As a business owner, you have probably encountered some or even all of the contracts mentioned above. We strongly encourage you to ask your business lawyer or corporate counsel to review every agreement before you sign it.
Call to Discuss Contracts for Your Business
Because contracts are vital to your business, it’s critical to make sure you use the right contracts and the right language. We can help.
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with business and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.