Important Contracts for a Texas LLC
Creating your Texas LLC is the first step towards setting up your company for success. However, there are some additional contracts you will need. It is recommended you consult with a business lawyer to tailor these agreements specifically to your business goals and objectives.
LLC Operating AgreementAfter you create your LLC and get an IRS Employer ID Number, you should consult a business lawyer to obtain an LLC Operating Agreement. This document will explain ownership interests, management structure, decision-making protocols and ultimately what would happen to the business if a triggering event like an acquisition or bankruptcy were to occur.
Employer AgreementAn employer agreement is not the same thing as an independent contractor agreement (but you should also have one of those if you plan to hire contractors). Texas is an “at-will” employment state meaning that employment that is not guaranteed and can be terminated at any time by either the employee or employer for any reason or no reason, with or without notice or cause, as long as it is not for an unlawful reason.
A typical employer agreement outlines the terms of employment including wages, company benefits, etc. for service, the specific position the employer is hiring for, explanation of company expectations on and off-property, triggering events for termination of employment, restrictive covenants (e.g., confidentiality, non-competes, non-solicitation and/or non-disparagement clauses), and boiler-plate language concerning resolution of employment disputes.
Nondisclosure Agreement (NDA)All most all companies have some confidential information that they need to protect. An NDA protects this information from the people you share it with. If the party share the confidential information, they are in breach of contract of the NDA, and you could be entitled to relief in court.
Proprietary Information AgreementThis document protects the employer by transferring and/or assigning ownership of work product/intellectual property produced by an employee where the production of the work included resources or information that was available to the employee by virtue of his employment with the company. It does so by defining the work product/intellectual property as “work for hire” as part of the employment relationship.