Starting a business is exciting, but it also comes with a lot of responsibility. A lot of new business owners think about the shiny, fun things first – like launching their website, getting brand photos done, and of course posting on the ‘gram!
But one of the most important foundations that shouldn’t be overlooked when launching a new business are contracts!
And I know… it doesn’t sound like the most exciting thing to focus on when launching your business, but it is THE thing that will protect you, your business, and your clients when you start selling your products or services.
I know what you might be thinking though… “what contracts are actually needed to start a business?”
This is a good question! Because honestly, there are LOTS of options out there when it comes to business contracts.
So to help ease some of the overwhelm and get you started in the right direction, this blog post will break down the contracts every business owner needs, explain the purpose of contracts, and give examples of both general and niche contracts so you know exactly what you need.
Short on time? Here are the three contracts every online business owner needs from day one:
- Privacy Policy: legally required if you collect any personal data (emails, names, payment info)
- Website Terms and Conditions: sets the rules for how visitors can interact with your site and content
- Client Services Agreement (if you provide services) or Terms of Purchase (if you sell products): governs the actual transaction between you and your customer
Once those are in place, you can add contracts like disclaimers, independent contractor agreements, and testimonial releases as your business grows.
The Purpose of Contracts for Your Business (and When You Need Them)
Before diving into the actual contracts that are needed to start a business, let’s quickly talk about the main purpose of contracts for your business!
Because some people tend to think you only need them when issues arise. But the truth is that contracts play a much larger role and should be thought about wayyyy before you actually have a legal situation on your hands.
Here’s why: contracts are legal agreements that outline the expectations, responsibilities, and rights of all parties involved in a business relationship.
They serve several important purposes and should be implemented from the very start of your business! Even if you’re only working with one client or collaborating with a single vendor, having a signed agreement is always better than relying on verbal promises or informal emails.
The three biggest purposes of contracts in your business include:
Protection
This one is obvious, but it’s incredibly important! Contracts help protect your business from disputes, misunderstandings, or liability – aka they protect you in SO many ways.
For example, if a client fails to pay for services rendered or misuses your work, having a contract in place makes it much easier to enforce your rights and resolve conflicts without lengthy legal battles.
Without a contract, you’re leaving yourself open to potential legal disputes and you have no real ground to stand on to protect yourself.
Clarity
Next, a well-drafted contract clearly outlines who is responsible for what, the scope of work, timelines, and payment terms.
This clarity ensures both you and your clients are on the same page from the very beginning, reducing confusion and preventing scope creep or misaligned expectations.
Professionalism
Lastly, the purpose that many people may not fully take into consideration is how having contracts in place demonstrates that your business operates professionally and responsibly.
Clients are more likely to take your work seriously when you present clear, legally sound agreements, which can also enhance trust and credibility!
General Contracts vs. Niche Contracts for Business Owners
When it comes to the contracts you need for your business, something important to realize is that not all contracts are created equal and they fall into two categories: general contracts and niche contracts.
General contracts are flexible agreements that can apply to a variety of business relationships.
For example, a standard client services agreement can work for most projects where you provide services to a client. These contracts usually cover basics like payment terms, confidentiality, and scope of work.
Niche contracts, on the other hand, are tailored to specific industries or situations. Niche contract examples include affiliate agreements for bloggers, non-disclosure agreements for creative projects, or licensing agreements for digital products.
These types of contracts often contain language designed to address the unique risks or requirements of that type of work.
The important part here is that your business needs BOTH! General contracts will ensure that you’re covered for everyday business activities, while your niche contracts will cover more specialized situations.
It’s for this very reason that I designed our contract template shop to be categorized by different industries because I know that every online business is different.
While there are some contracts that I recommend for every business owner, the majority of contracts that you need will come down to your specific business type and the products that you offer.
But speaking of the contracts that every business owner needs…
The 3 Contracts Every Business Owner Needs from Day One
There are a lot of contracts out there, and the full list you'll eventually need depends on your business type. But when you're just getting started, these are the three that matter most:
Privacy Policy
A Privacy Policy is a legal statement that tells your website visitors how their data is collected, used, and stored and it’s required if you collect any personal information, such as emails, names, or payment information.
This one is huge, not only because it’s legally required, but mainly because the penalties can be steep. Under the California Consumer Privacy Act (CCPA), intentional violations can result in fines of up to $7,500 per violation, and those add up fast when you're talking about multiple website visitors. 🤯
(You can read more on that risk here.)
Essentially, if you want to be able to KEEP the money that you make in your business, make sure this policy is implemented and that it’s clearly displayed on your website, typically in the footer!
Website Terms and Conditions
Your Website Terms and Conditions outline the rules and guidelines for visitors interacting with your website. These terms often include disclaimers about the content, limitations of liability, and rules for using your intellectual property.
The best way to think about your Terms and Conditions is like the digital boundaries for your website that state how people can use your site.
In your Terms and Conditions, you can set age requirements, specify that they can’t take your graphics and photos, copy your blog, backlink to your site, etc.
When you have this agreement in place, if anyone crosses those boundaries, you can actually do something about it when necessary.
A Client Services Agreement (Service Providers) or Terms of Purchase (Product Sellers)
This one depends on what you're selling.
If you're a service provider (designer, copywriter, coach, social media manager, consultant), you need a Client Services Agreement. This is the backbone of your client relationships. It outlines the scope of work, timelines, payment terms, revision policies, and what happens if things go sideways. It protects you from scope creep, ensures you get paid, and gives both you and your client a clear framework for the working relationship.
Browse our service agreement templates and choose the one that fits your business.
If you sell products, digital goods, or courses, you need a Terms of Purchase. This agreement covers payment, delivery, returns, refunds, cancellations, and licensing for digital products. Two of the most important things it addresses: refunds and chargebacks, both of which can become major headaches without clear terms in place.
Legal pro tip: set your Terms of Purchase up as a clickwrap checkbox at checkout so your clients are actively agreeing to it, making it more enforceable later. (The other option is a browsewrap. Here's the difference!)
And if your business does both (services AND products)? You'll want both agreements.
Contracts to Add as Your Business Grows
Once your core three are in place, here are the contracts you'll likely need next, depending on how your business evolves:
General Disclaimer: Covers a range of topics from the advice you provide to third-party links on your site. If you're in an industry where people expect specific results (health and wellness, financial, coaching), a disclaimer is especially important. Depending on your niche, you may also need specific disclaimers, like a financial advice disclaimer or an earnings disclaimer.
Independent Contractor Agreement: Once you start outsourcing (hiring a VA, a designer, a copywriter), you need a contract that defines the relationship, scope of work, payment terms, IP ownership, and confidentiality. This also helps establish that your contractor is, in fact, an independent contractor and not an employee, which has real tax and liability implications.
Testimonial or Media Release: If you're using client testimonials, case studies, or photos in your marketing, a release protects you by getting written permission to use that content.
Non-Disclosure Agreement (NDA): Useful when sharing proprietary information with contractors, collaborators, or potential business partners.
Affiliate Agreement: If you run an affiliate program or participate in one, this spells out commission structures, promotional guidelines, and disclosure requirements.
Frequently Asked Questions
What contracts do I need to start an online business? At minimum, you need three: a Privacy Policy, Website Terms and Conditions, and either a Client Services Agreement (if you're a service provider) or a Terms of Purchase (if you sell products or digital goods).
Do I need a contract if I only have one client? Yes. A contract protects both you and your client from the very first project. It's much easier to set expectations from the start than to try to enforce terms after a dispute arises.
What's the difference between a general contract and a niche contract? General contracts (like a privacy policy or website terms) apply to almost every business. Niche contracts (like a web design agreement or affiliate agreement) are tailored to specific industries or business activities. Most businesses need a mix of both.
Do I need a disclaimer on my website? If you share content that could be interpreted as professional advice (financial, legal, health, coaching), a disclaimer helps clarify that your content is educational, not personalized guidance. It's not always legally required, but it's a strong layer of protection.
The Best Contract Templates for Online Business Owners
Overall, when you start your business, contracts aren’t just legal formalities – they’re tools that help you run your business professionally and confidently.
By implementing these foundational contracts from the start, you set your business up for long-term success and wayyy less legal headaches down the road.
The easiest way to implement contracts for your new business is to invest in ready-made contract templates that are designed with your business in mind – and that’s exactly what we offer here at The Boutique Lawyer!
Our contract template shop offers all of the contracts that every new business owner needs, including the 5 above, plus a ton of others for specific situations.
But if you need two or more of these contracts for your new business, the Chief Legal Officer Suite was created with you in mind – this contract bundle includes everything from client agreements to website policies to marketing and media releases.
That means you’re not left scrambling the next time you add a new offer, hire a contractor, or land a podcast interview. You’ll already have the tools in place to say yes with confidence.
And the best part is that each template is written in plain English, is easy to customize, and comes with built-in instructions, so you aren’t guessing at how to implement them.
We’ve truly done the hard work for you (including going to law school 😉), all you’ve gotta do is grab the best contract bundle you’ll find for online business owners and follow our step-by-step guide to start using them with ease!
ABOUT THE AUTHOR, AMBER GILORMO – ATTORNEY AND FOUNDER OF THE BOUTIQUE LAWYER
Amber Gilormo is the cool lawyer behind The Boutique Lawyer – a one-stop contract template shop for creative entrepreneurs, online business owners, coaches, and service providers.
From client agreements to digital product terms and everything in between, our lawyer-drafted templates take the guesswork out of staying legally protected online (no legal jargon required).
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