The Encyclopedia of Small Business Forms and Agreements: A Complete Kit of Ready-to-Use Business Checklists, Worksheets, Forms, Contracts, and Human Resource Documents

Copyright © 2011 Atlantic Publishing Group, Inc.
1210 SW 23rd Place • Ocala, Florida 34471 • Phone 800-814-1132 • Fax 352-622-1875

Web site: www.atlantic-pub.com • E-mail: sales@atlantic-pub.com

SAN Number: 268-1250

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the Publisher. Requests to the Publisher for permission should be sent to Atlantic Publishing Group, Inc., 1210 SW 23rd Place, Ocala, Florida 34471.

Library of Congress Cataloging-in-Publication Data

Maeda, Martha, 1953-

The encyclopedia of small business forms and agreements : a complete kit of ready-to-use business checklists, worksheets, forms, contracts, and human resource documents with companion CD-ROM / by Martha Maeda.

p. cm.

Includes bibliographical references and index.

ISBN-13: 978-1-60138-248-1 (alk. paper)

ISBN-10: 1-60138-248-0 (alk. paper)

1. Small business--United States--Forms. 2. Small business--Law and legislation--United States--Forms. I. Title.

HF5371.M284 2010

651’.29--dc22

LIMIT OF LIABILITY/DISCLAIMER OF WARRANTY: The publisher and the author make no representations or warranties with respect to the accuracy or completeness of the contents of this work and specifically disclaim all warranties, including without limitation warranties of fitness for a particular purpose. No warranty may be created or extended by sales or promotional materials. The advice and strategies contained herein may not be suitable for every situation. This work is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional services. If professional assistance is required, the services of a competent professional should be sought. Neither the publisher nor the author shall be liable for damages arising herefrom. The fact that an organization or Web site is referred to in this work as a citation and/or a potential source of further information does not mean that the author or the publisher endorses the information the organization or Web site may provide or recommendations it may make. Further, readers should be aware that Internet Web sites listed in this work may have changed or disappeared between when this work was written and when it is read.

 

 

A few years back we lost our beloved pet dog Bear, who was not only our best and dearest friend but also the “Vice President of Sunshine” here at Atlantic Publishing. He did not receive a salary but worked tirelessly 24 hours a day to please his parents.

Bear was a rescue dog who turned around and showered myself, my wife, Sherri, his grandparents Jean, Bob, and Nancy, and every person and animal he met (well, maybe not rabbits) with friendship and love. He made a lot of people smile every day.

We wanted you to know a portion of the profits of this book will be donated in Bear’s memory to local animal shelters, parks, conservation organizations, and other individuals and nonprofit organizations in need of assistance.

– Douglas and Sherri Brown

PS: We have since adopted two more rescue dogs: first Scout, and the following year, Ginger. They were both mixed golden retrievers who needed a home.

This book contains checklists, worksheets, forms, contracts, human-resource documents, and sample letters to help you manage every aspect of your small business. You will find everything you need to plan a business startup, organize your finances, buy or lease real estate, set up a bookkeeping system, interact with your customers and clients, keep track of inventory and supplies, create and maintain a project schedule, hire and manage employees, and deal with setbacks and complications. The documents in this book represent the experience of thousands of business owners, accountants, attorneys, and consultants who have learned how to succeed in their fields.

Putting Everything in Writing

Before you go to the grocery store, you do not necessarily have to write down a shopping list; you can compose a mental list of the ite ms you need, or you can just push your cart along the aisles and pick up things as they catch your eye. But what happens when you get home and find you forgot a crucial ingredient for tonight’s dinner, or you get to the cash register and do not have enough money to pay for everything in your cart? A business agreement does not have to be put in writing to be legal; it can be a verbal agreement or a relationship that is just understood. But what do you do when your business partner fails to show up for an important job, or does not hand over your share of a payment? What happens when a tenant does not pay his rent, a supplier fails to deliver goods on schedule, or a manufacturer sends you the wrong items? Writing everything down helps you organize your thoughts, anticipate your expenses, and ensure that everyone involved in a business transaction clearly understands their roles and responsibilities. Written contracts and agreements spell out exactly what actions will be taken if one party fails to fulfill its obligations.

Save time and get organized

Using lists, written procedures, and standardized documents saves time and helps you organize your business processes effectively. For example, numbered purchase orders, invoices, and receipts are used in accounting systems to track all of a business’s transactions and make it easy to look up information quickly. Following a checklist of cash-register procedures ensures that sales are properly recorded and important security measures are never overlooked. Hundreds of people can read and follow written instructions without having to be personally taught how to do a task.

Every business has needs and requirements similar to those of other businesses. You do not need to “reinvent the wheel” every time you start a new business or implement a new process. Benefit from the experience of all those who have gone before you by adapting the plans, contracts, and documents they have already developed and used successfully in their businesses. You have so much to accomplish that you do not have time to think your way carefully through every contingency of your new business. Instead, build on someone else’s success strategies by using standardized checklists, documents, and legal contracts. Then devote your valuable time to finding new customers and developing your product.

Make it legal

A contract or legal agreement clarifies exactly what is expected of each of the parties to a business transaction, and what the consequences will be if any party fails to fulfill those expectations. Each party involved in the agreement knows it can be taken to court if certain conditions are not met. Legal contracts protect you from harm when something goes wrong. Each clause in a contract is designed to cover a specific eventuality. For example, a real estate mortgage contract often includes a clause requiring insurance to be taken out on the property in case it is damaged in a fire or flood. This protects both the borrower and the lender from losing money if the property is destroyed. The words in a contract determine who will have to pay if a project overruns its budget, or if a manufacturer delivers substandard goods.

Manage and control

Written contracts and agreements have an authority of their own. Everyone who signs an agreement acknowledges that he or she accepts its terms. Anyone who breaks the terms of a contract knows what the consequences will be. Contracts are an effective method for establishing and maintaining standards. For example, if you sign an agreement to buy materials of a certain standard from a manufacturer and the manufacturer fails to meet that standard, you have legal grounds to return the materials and refuse payment. Employees who sign a code of conduct or an Internet-use agreement know they can be disciplined or terminated for disregarding it. When such agreements are regularly enforced, all employees know what is expected of them. An employee fired for violating such a contract cannot claim unfair termination.

How to Use This Book

The documents in this book are ready-to-use; all you have to do is fill in the blanks or change a few words to suit your particular business needs. All of the documents can be printed from the companion CD-ROM, which also contains numerous additional legal forms, sample documents, and letters, including IRS and other government forms to supplement each section of the book. The title of each document explains its purpose, and many are accompanied by brief explanations. Read each document carefully before using it to make sure it is appropriate for your business needs, and make any necessary changes. Some of the documents in this book are legally binding contracts and agreements, while others, such as invoices and receipts, are simply official records of transactions. Consult a lawyer, accountant, or real estate agent before signing any document that commits you to important legal obligations. Although many simple contracts and transactions do not require a lawyer’s services, you will save time and money by getting legal advice if your situation is complicated.

Table of Contents

CHAPTER 1: Starting a Business