You’ve formed an LLC, congratulations, but now what? You’ve taken an essential step at limiting your liability, but it’s only the first step. Contracts are an essential part of your business. Let’s use this analogy: Imagine your business as your body, anytime you move to walk or talk, your business is engaging with another party; whether it’s hiring your first independent contractor, making a major purchase, or taking on a joint venture you’ll need a contract to protect yourself.
Long gone are the days where a handshake and pat on the back were enough to ensure you had a deal that each party would honor. There’s an old legal proverb, “Verbal agreements are as good as the paper they’re written on.” It’s true, try enforcing a verbal agreement in a court of law. Good luck! At a trial, it’s the classic he said she said. People’s memories are short, that’s why your business needs contracts with clearly defined industry-specific provisions to protect your interests.
Part of my job as an attorney is being a mediator. I’ve witnessed firsthand best friend’s form a business, become successful, and when it was time to split the profit become mortal enemies. Nasty stuff, unfortunately, most people when they have a great idea they forget the legal end. In this case, when founders have an operating agreement for their business which clearly outlines things like, profit sharing, managerial and fiduciary duties to name a few; it saves them time, money, and heartache down the road.
Contracts are the essential next step in protecting your business. Without it, you’re asking for trouble. It’s not enough to Google a contract, print it out, and sign on the dotted line. Make sure you purchase your contract from a reliable trusted attorney that knows what they’re doing. Don’t play yourself, spend the money up front on a contract and save yourself hundreds or thousands of dollars in the long run!
Visit the contract template shop for immediate digital downloads of the contracts that you need to run your business 24/7.
Written by – Sean P. Young, Esq.
**DISCLAIMER: The information given here is general in nature and does not create an attorney-client relationship. **