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đź’ˇ IDEAS Which Legal Contracts Do Online Entrepreneurs Need to Protect Their Business?

When I first started my online business, I didn’t think much about legal contracts. I was too focused on building my website, finding products, and making sales. But after a few close calls—like a designer trying to reuse a logo they made for me—I realized just how important legal protection is when you’re doing business online.


Here are the key contracts I’ve learned every online entrepreneur should consider having in place:


1.​

Terms and Conditions



This was one of the first documents I added to my website. It outlines the rules for using your site, what’s expected of customers, and what happens if there’s a dispute. It’s especially helpful if you sell products or services and want to clearly state your refund policy, shipping terms, or limitations of liability.


2. Privacy Policy​


Since I collect customer emails, addresses, and sometimes payment info, I had to create a privacy policy that explains how I collect, use, and protect their data. In some places like the EU or California, this isn’t optional—it’s a legal requirement.


3. Service Agreement or Client Contract​


When I started offering digital marketing as a side hustle, I quickly learned the value of a service agreement. It helped avoid misunderstandings with clients by clearly stating deliverables, deadlines, payment terms, and what happens if one side cancels.


4. Independent Contractor Agreement​


I hired a virtual assistant from the Philippines to help manage emails and social media. Before handing over any work, I made sure we both signed an independent contractor agreement. This clarified that she wasn’t an employee and included clauses about confidentiality and intellectual property.


5. Non-Disclosure Agreement (NDA)


I once pitched a new business idea to a potential partner, only to see them launch something similar weeks later. Now, I don’t share sensitive business plans without an NDA in place. It protects your ideas by legally preventing others from sharing or stealing them.


6. Partnership Agreement​


When a friend and I discussed starting a new venture together, we decided to put everything in writing. The partnership agreement covered roles, profit sharing, responsibilities, and exit strategies. We didn’t end up launching, but having that agreement avoided any future tension.
 

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