1. Founders Agreement
If you are starting a business with one or more person, you need a founders’ agreement. Why? Well, before you even select and create an entity, your team will probably have already worked many hours developing the business. It is possible that each of you contributed, and continue to do so, to different aspects of the business. For example, you were the one with the idea, but one of your partners was the one that put the money, and the other was the one that put in the work. A founders’ agreement will help define responsibilities, the decision making process, potential ownership, and the operating procedures among your team.
2. Non-Disclosure Agreements (NDA)
Generally, entrepreneurs will want to raise capital by pitching to potential investors. In doing so, you will share your awesome business idea with a handful of people. If you don’t want the word to spread around, you should try to get people to sign
3. Commercial Lease
Most startups will need a commercial lease for their business. A commercial lease is a contract between you (food truck, coffee shop, retail store) and a landlord (gas station, food truck park, parking) for the rental of property. For example, if you are starting a food truck, you will probably need a commercial lease to park your truck on someone else’s premises. Other fixed businesses will also need a commercial lease, be it with a mall or a building.
4. Service Agreement
You can use a service agreement to provide a service and get paid by doing
5. Sales and Purchase Agreement (SPA)
The SPA helps establish the terms and conditions between a buyer and a seller. Let’s say that you sell farm crops to food trucks. Through the SPA you can agree the place and time of the transaction; the price of the crops; what happens if you can’t deliver the goods; and the exclusivity, if any, of the relationship between you and your buyers, among other things.
In part 1 of this blog post, we listed 5 typical contracts your startup needs. Feel free to comment below what type of contract your business already uses!
14 Legal Contracts Your Startup Needs, Law Geex, https://blog.lawgeex.com/14-legal-contracts-your-startup-needs/
Sales and Purchase Agreement, Investopedia, https://www.investopedia.com/terms/s/salesandpurchase.asp
Service Agreement, Definition U.S. Legal, https://definitions.uslegal.com/s/service-agreement/
Commercial Lease, Business Dictionary, http://www.businessdictionary.com/definition/commercial-lease.html
Confidentiality Agreement v. Non-Disclosure, Legal 123, https://legal123.com.au/confidentiality-agreement-vs-non-disclosure/
Founders Agreement, Foundera, https://www.fundera.com/blog/founders-agreement