Running a business in the U.S. is exciting, but protecting your company legally is crucial. One of the most important steps is having the right business contracts. Contracts establish clear rules, protect your rights, and prevent disputes. In this guide, we’ll cover the essential contracts every business needs, from LLC agreements to employment contracts, and provide tips to keep your business secure in 2025.
1. Partnership or Operating Agreements
LLC Operating Agreement
- Defines ownership percentages, management responsibilities, and profit distribution
- Protects personal assets by establishing legal separation between members
- Essential even for single-member LLCs to clarify operations and future changes
Partnership Agreement
- Clarifies each partner’s role, contributions, and responsibilities
- Sets rules for decision-making, profit sharing, and dispute resolution
- Prevents conflicts between partners in case of disagreements
Tip: Always put these agreements in writing and have them reviewed by a lawyer.
2. Employment Contracts
Employment contracts define the relationship between your business and your employees:
- Outline job duties, compensation, and benefits
- Include confidentiality, non-compete, and intellectual property clauses
- Specify termination procedures and dispute resolution
Tip: Even at-will employment states benefit from written contracts to clarify expectations.
3. Independent Contractor Agreements
Many businesses hire freelancers or contractors. These agreements:
- Define the scope of work, payment, and deadlines
- Specify ownership of deliverables and intellectual property
- Clarify the independent nature of the relationship to avoid misclassification
Tip: Proper contracts help prevent legal issues with the IRS or labor authorities.
4. Vendor and Supplier Contracts
Vendor agreements protect your business when working with suppliers or service providers:
- Outline deliverables, timelines, pricing, and payment terms
- Include liability, warranties, and termination clauses
- Protect your business from unreliable vendors or disputes
Tip: Review contracts carefully and negotiate terms to protect your company.
5. Customer Agreements and Terms of Service
Customer contracts ensure clarity and reduce legal risks:
- Specify products, services, and pricing
- Include refund, cancellation, and liability policies
- Protect intellectual property and outline dispute resolution methods
Tip: For online businesses, having clear Terms of Service and Privacy Policies is essential for compliance and credibility.
6. Non-Disclosure Agreements (NDAs)
NDAs protect sensitive business information:
- Used when sharing ideas with employees, contractors, or partners
- Prevents unauthorized disclosure of trade secrets, formulas, or strategies
- Can be mutual (both parties share confidential info) or one-way
Tip: Use NDAs strategically to protect your intellectual property and competitive advantage.
7. Intellectual Property Agreements
If your business creates IP, consider contracts like:
- IP assignment agreements (transfer IP ownership from employees or contractors to the company)
- Licensing agreements for software, trademarks, or patents
- Trademark and copyright registration agreements
Tip: Protecting IP early ensures long-term business security and revenue potential.
8. Shareholder Agreements (for Corporations)
For corporations, a shareholder agreement is essential:
- Defines shareholder rights and responsibilities
- Governs stock transfers, voting rights, and dispute resolution
- Prevents conflicts in the event of death, divorce, or exit of a shareholder
Tip: Work with a corporate attorney to draft agreements tailored to your business needs.
9. Final Tips for Business Contracts
- Always put contracts in writing: Verbal agreements are hard to enforce
- Be clear and specific: Avoid vague terms to reduce disputes
- Include dispute resolution: Specify mediation, arbitration, or court procedures
- Review periodically: Update contracts as your business grows or laws change
Having the right legal contracts for companies USA ensures your business runs smoothly, protects your assets, and minimizes legal risks. Proper agreements create trust with employees, partners, vendors, and customers, setting your company up for success in 2025 and beyond.