The Legal Templates Every Small Business Needs
Most small businesses run on the same handful of documents. A template gets you a sound starting draft of each for a fraction of a lawyer's fee, as long as you know which ones are routine and which carry enough risk to need a professional.
This is general information, not legal advice. Rules on contracts and business formation vary by state.
The core set
| Document | What it does | Who needs it |
|---|---|---|
| Operating agreement | Sets out who owns the LLC, how decisions are made and what happens if a member leaves | Every LLC, including single-member |
| Independent contractor agreement | Defines scope, payment, deadlines and who owns the work | Anyone hiring freelancers |
| Client services agreement | Your terms for the work you do: price, scope, revisions, payment dates, cancellation | Freelancers and service businesses |
| Non-disclosure agreement | Keeps shared information confidential | Before sharing plans with partners or contractors |
| Invoice and payment terms | Due dates, late fees, accepted methods | Everyone who bills |
| Privacy policy and website terms | What your site collects and the rules for using it | Any business with a website |
The operating agreement matters more than people think
Many states do not require an LLC to have a written operating agreement, so plenty of single-member LLCs never make one. That is a mistake for two practical reasons. First, banks often ask for it when you open a business checking account. Second, it is part of what shows the LLC is a separate entity from you, which is the whole point of forming one.
For a single owner the document is short: who owns the business, who can sign for it, how profits are handled, and what happens to it if you die or become unable to run it.
Legal Templates walks you through operating agreements, contractor agreements, NDAs and other business documents question by question, then produces a finished draft. See Legal Templates.
Contractor agreements protect you twice
An independent contractor agreement does the obvious job of setting price and deadlines. It also does two less obvious ones. It states who owns the finished work, which matters for anything creative or technical, where the default is often that the person who made it owns it. And it documents the working relationship, which helps if the IRS or a state ever questions whether the person was really an employee. The agreement alone does not decide that; how the work is actually controlled does.
Your own client terms
If you sell services, a short written agreement prevents most disputes before they start. The clauses that do the work: exactly what is included, how many revisions, when payment is due, what happens if the client cancels halfway, and a deposit before you begin. Freelancers who add a deposit clause usually find late payment stops being a regular problem.
State-specific forms
Some documents change by state: formation filings, certain lease terms, and some employment forms. For those, a template built for your state is worth more than a generic one.
US Legal Forms sells documents drafted for individual states, including LLC formation and operating agreement forms. See US Legal Forms.
When to pay a lawyer instead
- Several owners with unequal stakes. Buyout terms and disputes between co-owners are where templates are weakest.
- Raising money from investors. Equity and investment documents need professional drafting.
- Large or unusual contracts. If a single contract is a large share of your revenue, have it reviewed.
- Regulated work. Health, finance, childcare and anything involving licences.
- Employees. Hiring staff brings state employment law into play.
A reasonable middle route is to draft from a template and pay a lawyer for an hour to review it. That usually costs far less than having them draft from scratch.
Keeping them organised
Store signed copies in one folder, named by document and date. Review your client terms and operating agreement once a year, or whenever the business changes: a new partner, a new service, a move to another state.
Common questions
Does a single-member LLC need an operating agreement?
Many states do not require one, but it is worth having. Banks often ask for it, and it helps show the LLC is separate from you personally.
Are online legal templates legally binding?
A signed contract can be binding whether it started from a template or a lawyer's draft. What matters is that it is complete, clear and suits your state and situation.
What contracts does a freelancer need?
At minimum a client services agreement covering scope, price, revisions and payment dates, plus an NDA when a client shares confidential information.
When should I use a lawyer instead of a template?
For multiple owners, investors, large contracts, regulated industries or hiring employees. For routine documents, a template reviewed by a lawyer is a cost-effective middle ground.
Figures and rules in this article are checked against the official sources below. Where they disagree with us, they win.
