Launching a small business is a great opportunity, but handling the legal responsibilities can quickly become overwhelming. You’re an entrepreneur, not a lawyer, so when it comes to handling small business legal contracts in Texas, you should trust a legal representative to help guide you through the process.
Legal contracts are a big part of the business world. From startups to specialty boutiques and longstanding businesses, these contracts can safeguard your interests. In this guide, we share a breakdown of legal contracts that Texas entrepreneurs should be familiar with.
Small Business Legal Contracts in Texas: Business Partnership Agreements
Starting a business with a partner can be exciting, but you do need a business partnership agreement to protect the partners and ensure the terms of business are very clear. A partnership agreement outlines all of the pertinent details, such as these:
- Partner roles
- Partner responsibilities
- Ownership stakes
- Division of profit, losses, and expenses
- Business details
A properly drafted agreement will make things clear to help prevent disputes. Defining the terms of management and the expectations of each partner will specify how decisions are made and make processes for exiting or handling disagreements clear.
Non-Disclosure Agreement
Not every business will utilize a non-disclosure agreement or NDA, but it is a valuable tool for those who do need it. An NDA determines how sensitive information is shared with investors, contractors, and employees. It details how that information can be used and is designed to protect trade secrets, intellectual property, and business strategies.
This document is essential to prevent information from being misused or handed over to competitors. NDAs in Texas do have specific requirements about scope, protected information, and the duration of the agreement, so they need to be carefully drafted.
Employment Contracts
Employment contracts are a great way to ensure the terms of compensation and employment expectations are clear. These contracts can vary depending on your needs and the position, but they typically have details like:
- Position title
- Pay
- Benefits
- Job descriptions
- Confidentiality clauses
- Termination terms
- Length of contract
This contract is used to set expectations to help avoid misconduct or confusion. Texas is an at-will state, which means an employer can terminate an employee for any reason. However, a contract can still be beneficial to both parties for setting expectations and establishing an agreement.
Small Business Legal Contracts in Texas: Independent Contractor Agreement
If you will need to hire any type of freelancer or independent worker, having an independent contractor agreement can be beneficial. This agreement could be generic as to what you expect with independent contractors, but it is much better to be specific for the need at the time of service. The contract should outline work, payment terms, deadlines, confidentiality requirements, and the scope of work.
This is an important one because the Texas Workforce Commission has very strict guidelines about classifying workers. A contract can establish the type of work and help prevent legal issues or misclassification.
Client Service Agreement
If your business provides services directly to clients, a client service agreement will be necessary. The exact details will depend on the nature of your service, but the contract should have pertinent details such as these:
- Scope of work
- Timelines if applicable
- Deliverables
- Fees
- Special terms
- Liability clauses
The contract should cover every legal aspect and set clear expectations while protecting your business.
Intellectual Property Assigned Agreement
In businesses that have intellectual property, this agreement is very important. An IP agreement is most common for businesses that create content or designs or have inventions. Setting a contract for the intellectual property clearly establishes ownership and rights for that property.
Without an agreement like this, an individual, a contractor, or a third party will retain ownership of any work they create, which could be problematic when it comes to using or selling that property. Protect ownership of valuable intellectual property with this agreement.
Lease Agreement
Finally, a very common legal agreement for businesses is a lease agreement. If you do not own your commercial or building space, this will be necessary. It’s likely an agreement you are somewhat familiar with, because they are a big part of business operations.
This type of agreement will detail all the terms of renting the property, including timelines, maintenance, utilities, rent, and other property details. The purpose is to protect you as well as the property owner.
Get Help with Small Business Legal Contracts in Texas
When you’re handling contracts for small businesses, consult with a legal representative who can represent your needs and ensure you are protected. Having a solid legal foundation to safeguard your interests, clarify expectations, and establish a professional framework truly sets your business apart.
Take the time to work with a qualified attorney who understands state laws and is familiar with business agreements. At Vance Hendrix, Attorney at Law, we take great pride in offering a variety of business services to help you grow your business and protect your peace of mind. Schedule an appointment with us today!
