Legal Templates Small Businesses Commonly Need

Most small businesses need the same core set of legal documents — contracts, agreements, and policies that protect the business, define relationships, and keep things in writing. This guide covers the 12 templates that come up most often, what each one does, and when you need it.

The templates below cover the full range of situations most small businesses run into — from forming the entity to hiring people to protecting what you've built. Not every business needs all 12, but most will need at least half of them before the end of their first year.

Formation documents

Formation documents are the paperwork you file with the state to legally create your business entity. For an LLC, that's the Articles of Organization. For a corporation, it's the Articles of Incorporation. These documents establish your business's legal name, registered agent, and basic structure.

Corporations also need bylaws — an internal document that defines how the business is governed, including how shareholder meetings work, how directors are elected, and how votes are counted. Bylaws don't get filed with the state, but they're just as important as the articles.

Operating agreement

An operating agreement is the internal rulebook for an LLC. It covers ownership percentages, voting rights, how profits and losses are split, and what happens if a member wants to leave. It doesn't get filed with the state — it's a private document between the members.

Most states don't require an operating agreement, but skipping it is a mistake. Without one, your LLC falls back on default state rules — which may not reflect how you actually want to run the business. Every LLC with more than 1 member needs one, and single-member LLCs benefit from having one too.

Service agreement

A service agreement is a contract between your business and a client that defines what you're delivering, when, and for how much. It typically covers the scope of work, deliverables, payment schedule, and how either party can end the relationship.

If you provide any kind of service — consulting, design, cleaning, coaching, construction — you need a service agreement for every client engagement. A handshake deal is fine until there's a dispute about what was promised.

Non-disclosure agreement

A non-disclosure agreement (NDA) — also called a confidentiality agreement — is a contract that prevents the other party from sharing information you've disclosed to them. It's used when you're sharing sensitive business information: pricing, product plans, customer lists, proprietary methods, or financial data.

NDAs come up most often before negotiations — with a potential partner, investor, employee, or vendor. A good NDA names the parties, defines exactly what counts as confidential information, and specifies how long the obligation lasts.

Privacy policy

A privacy policy tells your website visitors and customers what personal data you collect, how you use it, whether you share it, and how you protect it. If your business has a website, app, or any online form that collects information — even just an email signup — you need one.

Privacy laws vary by jurisdiction, but the core disclosures are consistent: your business name and contact information, what data you collect (names, emails, payment details, IP addresses), how you use it, and how users can request changes or deletion.

Terms of service agreement

A terms of service (TOS) agreement governs the relationship between your business and anyone who uses your website or platform. It sets the rules users agree to — acceptable use, limitations on your liability, dispute resolution, and what happens if someone violates the terms.

If you sell products or services online, or if users create accounts on your site, a TOS is not optional. It's the document that defines what you're responsible for and what you're not.

Consulting agreement

A consulting agreement is a contract between your business and an outside expert you're bringing in for a specific project or ongoing advisory role. It covers the scope of work, compensation, timeline, confidentiality, and how either party can end the engagement.

Consultants are typically independent contractors, so this agreement also helps establish that relationship clearly — which matters for tax purposes and worker classification.

Partnership agreement

A partnership agreement defines the structure of a business with 2 or more owners. It covers each partner's ownership percentage, duties, decision-making authority, how profits and losses are divided, and what happens if a partner wants to exit or the business dissolves.

Without a partnership agreement, disputes about money and control get resolved by state default rules — which rarely match what the partners actually intended. If you're going into business with anyone else, get this in writing before you start.

Employment agreement

An employment agreement is a contract between your business and an employee that sets out the terms of the job: title, responsibilities, compensation, benefits, hours, and how the employment can end. It's different from an offer letter — the offer letter makes the job offer, the employment agreement is the binding contract.

Employment agreements often include confidentiality clauses and, in some cases, non-compete or non-solicitation provisions. Talk to a legal professional before adding those — their enforceability varies significantly by state.

Independent contractor agreement

An independent contractor agreement documents the terms of a working relationship with a freelancer or contractor — someone who isn't an employee. It defines the scope of work, deadlines, payment, who owns the work product, and who's responsible for taxes.

This agreement also helps establish contractor status for IRS purposes. Getting the classification wrong — treating someone as a contractor when the IRS considers them an employee — can mean back payroll taxes, penalties, and interest. A well-drafted agreement is one layer of protection.

IP assignment clause

An intellectual property (IP) assignment clause transfers ownership of work product — software, designs, written content, inventions — from the person who created it to your business. Without one, the individual creator may retain legal ownership even if you paid for the work.

IP assignment clauses belong in employment agreements, contractor agreements, and founder agreements. They're especially important for businesses built around proprietary technology, creative work, or any product that depends on who legally owns the underlying IP.

Bill of sale

A bill of sale documents the transfer of a physical item from seller to buyer. It records what was sold, the purchase price, and the date of transfer — confirming that both sides completed the transaction. Think of it as a receipt with legal weight.

Bills of sale come up most often when a business sells equipment, vehicles, or inventory. They can follow a sales agreement or stand alone as the primary record of the transaction.

Organization meeting minutes

Meeting minutes are a written record of decisions made at formal business meetings — board meetings, partner meetings, or shareholder meetings. They document who attended, what was discussed, and what was decided.

Corporations are generally required to keep meeting minutes as part of their corporate records. LLCs aren't always required to, but keeping them is a good habit — especially if a dispute arises later about what was agreed to. A template makes the process faster and consistent.