Essential Contracts for Small Businesses in Draper

Starting or growing a small business in Draper, Utah is exciting—but it also comes with legal responsibilities that shouldn’t be overlooked. One of the most important ways to protect your business from costly disputes and confusion is by having strong, clearly written contracts in place.

At Harward & Hawes, we help business owners across Utah draft and review contracts that set the foundation for lasting success. Whether you're a startup, a solo entrepreneur, or an expanding operation, these contracts are essential to protect your interests, define expectations, and prevent misunderstandings.

1. Operating Agreement (for LLCs)

An Operating Agreement outlines how your business will be managed, how profits and losses are shared, and what happens if a member wants to leave the company. Even though Utah doesn’t legally require this document, it’s one of the most important contracts for multi-member LLCs in Draper.

Why it matters: Without one, you're subject to default state rules that may not align with your business goals or relationships.

2. Employment Agreements

If you hire employees, written employment contracts define the terms of the working relationship. These agreements typically cover salary, responsibilities, non-disclosure terms, and conditions for termination.

Why it matters: They help avoid disputes over job duties and compensation, and they can protect your business from liability.

3. Independent Contractor Agreements

When working with freelancers or outside consultants, it’s crucial to distinguish them from employees. An independent contractor agreement spells out project scope, payment terms, deadlines, and ownership of any work produced.

Why it matters: This protects your business and ensures compliance with Utah labor laws.

4. Service Contracts (Client Agreements)

If you provide services to customers, a well-written service agreement clarifies what you're delivering, payment structure, timelines, and what happens if either party wants to cancel.

Why it matters: It reduces the risk of disputes and sets expectations on both sides from the beginning.

5. Non-Disclosure Agreements (NDAs)

NDAs protect sensitive information like trade secrets, customer lists, and pricing strategies. These contracts are essential when working with employees, vendors, or potential partners who might gain access to confidential material.

Why it matters: In competitive markets like Draper, keeping your proprietary information secure is vital to long-term success.

6. Commercial Lease Agreements

If your business rents office or retail space, your lease is more than just a monthly rent contract. It can include repair responsibilities, renewal options, subletting rules, and restrictions that affect how you operate.

Why it matters: A reviewed lease ensures you’re not agreeing to unfavorable terms that could hurt your bottom line.

7. Partnership Agreements

If you’re starting your business with one or more partners, a partnership agreement clearly defines roles, responsibilities, profit-sharing, and what happens in case of a dispute or dissolution.

Why it matters: Verbal agreements often lead to misunderstandings. A written contract keeps everyone aligned and protects relationships.

8. Buy-Sell Agreement

This agreement lays out what happens if an owner retires, becomes disabled, or passes away. It ensures a smooth ownership transition and can be critical in preserving your company’s stability.

Why it matters: Business continuity depends on clear planning. A buy-sell agreement avoids legal battles and uncertainty.

Don’t Rely on Templates—Get Contracts That Actually Protect You

Many small businesses use online templates thinking it’s a quick solution. But contracts that aren’t tailored to your needs often leave dangerous loopholes, vague language, or terms that don’t comply with Utah law. That’s why having a knowledgeable attorney draft or review your contracts is a smart business move.

At Harward & Hawes, we bring clarity and precision to every agreement so you can move forward with confidence.

Ready to Strengthen Your Business with Clear, Effective Contracts?

If you operate a business in Draper or the surrounding areas, don’t leave your future up to chance. Schedule a consultation with one of our contract attorneys to review or draft the documents that protect your success.

📞 Call 801-506-3800 or contact us online to get started today.