Common Business Documents
As you bring on employees it is good to document the terms you have offered them. This includes their salary or hourly wage, vacation time, starting date, and probationary period. If you have contractors working for you, you must be careful to ensure they share some risk and rewards, and have some control over their work otherwise the government may deem them employees for tax purposes. A contractor contract can help clarify their responsibilities.
With senior employees, you may ask for a non-compete to limit their ability to compete in your existing service area.
If you are offering client’s credit and delivering products, it is wise to put in place credit agreements to help you collect. You may also want a lawyer to help you search the bankruptcy and personal property registries to look for current defaults.
When dealing with companies that are not well established, you may want an owner to personally guarantee repayment of the credit. This provides added protection if the company is not solvent.
If you are supplying goods, you only gain priority to those goods if you secure your interest and register in the personal property registry. A common way is to agree that title does pass until the debt is paid. In order to secure your inventory, other creditors may require notice..
If you are sharing information with third parties, other than lawyers , you may want to have them sign a confidentiality agreement to limit what they can do with any information they receive from you.