The process of starting a new business can be difficult and time consuming, and business owners will sometimes skip the important steps of creating an operating agreement, NDA and confidentiality agreements, client agreements, and other important contracts.
Neglecting the creation of these agreements can turn out to be a major hassle down the road for a company, especially if there is a legal dispute or lawsuit. A South Florida business formation attorney can help you figure out which of these contracts that you need as a small business owner and how detailed they need to be.
An operating agreement can protect your limited liability status
It is crucial to have a proper operating agreement in place which can protect you from liability or protect your company’s limited liability status. Hiring a South Florida business formation attorney to create an operating agreement will ensure that your company’s financial processes, functions, profit sharing and other important aspects are fully outlined. If there is any disagreement between owners of the company in the future, the operating agreement may be used to settle those disputes, and it is crucial that it is properly designed from the beginning.
You may need customer contracts or other agreements
If you enter into regular agreements with your clients or customers, you will likely need to hire an attorney to create a contract for each type of agreement. A customized contract that clarifies the type of relationship you are entering into, the service or product that is being offered to the client, the terms of the agreement, the responsibilities of the client and the business and many other important points need to be covered in this agreement. If you don’t have a client agreement in place, you may be exposing yourself to legal liability if there is a dispute in the future or a lawsuit.
You may need to protect your trade secrets
If you have important trade secrets, competitive advantages or intellectual property that needs to be protected, you may need to have your employees and business partners sign an NDA (non-disclosure agreement) and/or a NCA (non-compete agreement).
These agreements can protect your trade secrets and ensure that your employees and contractors do not share them with your competitors if they ever leave the company. It also can protect your customers’ lists, intellectual property, and help to ensure that your prior employees do not compete directly against you in the future in the same region or business.
If your business is in need of any contracts at all, contact Mark Schecter at Schecter Law today for information on how he can help.