Some basic contracts needed for Companies in the expansion/ growth phase:
1. Depending on the form of entity chosen, a comprehensive Stockholders Agreement (corporation), Partnership Agreement (partnership), or Operating Agreement (LLCs) should be in place if there is more than one member than just yourself. Without a detailed document, it is possible that in the event of a stalemate between quarelling owners, a state Court may rule to dissolve the Company.
2. Employment or Consulting/Independent Contractor Agreement: Although some see employment agreements as only necessary for executives, there is often an employment agreement provided to employees or independent contractors that requires they must agree to keep Company information confidential, preserve trade secrets, and if necessary, agree to a reasonable and enforceable non-compete clause. Executive employment agreements need to be drafted so that compensation, job responsibilities, and if necessary, post-employment non-compete clauses and non-disclosure provisions are agreed to in writing.
3. Sales Agreement/ License Agreement/ Service Agreement: Your Company will need agreements with its customers. Usually, a template is established that provides uniformity to the standards that will be in place for goods offered for sale. If there are intangible rights or creative works, it does not involve a “sale” but instead a right of use, or a license.
4. Engagement for Services/ Consulting Agreement: If your Company is not engaged in the sale of goods but rather in offering and performing services, such as consulting services, the Company should develop a consulting or services agreement to be used in all engagements.
5. Terms of Use/Privacy Policy for the Company Website: Yes, it seems generic, and yes, many owners may crib from an existing website. But that’s not lawful, and it pays to do this once, the right way, and tailor it to the business.
6. Office Lease. The post-pandemic period has become for some companies a reckoning with employee desires to work remotely or partially remotely. In some cases there’s a realization that given remote workers, the Company has leased too much office space. To the extent your Company needs flexibility concerning use of office space, whether it be contraction or expansion, and has concerns about limiting competing businesses nearby, the Lease is as important a document as any that your Company will enter into. Another important facet of the Lease is that there often has to be a personal guarantee of your Company’s payment and performance obligations if for any reason the Landlord does not deem the tenant entity to be creditworthy- and that Guarantee agreement needs to be curtailed to the specific needs of landlord and tenant.
