The Essential Contracts Every Maryland Small Business Owner Needs (and One You’re Probably Missing)

I know, not exactly the stuff of daydreams, right? But here’s the thing—contracts are like the unsung heroes of a successful business. They’re the quiet protectors that step in when things get messy. And let me tell you, things will get messy.

As a lawyer working with Maryland small business owners, I’ve seen the difference a solid contract can make. It’s not just about preventing problems (although that’s important). It’s about setting your business up to thrive. So, let me break it down for you—not as a lecture, but as someone who’s been in the trenches with folks just like you.

Employee Contracts: Clarity Is King

Here’s the thing about employees: they’re amazing—until they’re not. (And I mean that with love—people are unpredictable.) That’s why you need clear, strong employee contracts.

Maryland’s shifting labor laws have put non-compete clauses under scrutiny, especially for lower-wage workers. But for key roles? A well-drafted non-compete can be your best friend. Add in non-solicitation clauses to keep former employees from poaching your clients, and you’re covering your bases.

Here’s a fun fact (and by “fun,” I mean “terrifying”): As of 2024, over 20% of non-competes nationwide have been successfully challenged in court because they were too broad. If your non-compete isn’t rock solid, you might as well not have one.

Vendor Contracts: Trust with Terms

You trust your vendors—that’s great. But trust isn’t a substitute for clear terms. What happens if your supplier doesn’t deliver on time? Or at all? A vendor contract ensures you’re not left scrambling.

Here’s a pro tip: Maryland’s Uniform Commercial Code (UCC) governs most sales contracts, but relying on default rules is like buying a one-size-fits-all suit—it doesn’t always fit. Spell out delivery timelines, quality standards, and penalties for non-performance. Because when things go wrong (and they will), you’ll want more than a handshake agreement.

Client Contracts: Avoiding the “I Thought We Agreed” Moments

If I had a dollar for every time a client came to me saying, “I thought we agreed on something else,” I’d be retired.

Here’s the truth: expectations can get fuzzy, especially when you’re juggling a million things. A client contract clears up the confusion. It’s your roadmap for payment terms, scope of work, and, yes, how to end the relationship if things go south.

You might think, “I don’t want to scare off clients by being too formal.” Let me counter that with this: A good contract doesn’t scare people off; it reassures them. It says, “I’m professional, I know what I’m doing, and I’ve got my act together.”

Non-Disclosure Agreements: Protect Your Secrets

In the age of oversharing, keeping things confidential feels like a lost art. But if you’ve got trade secrets, client lists, or a groundbreaking idea, an NDA is your first line of defense.

Here’s a little Maryland tidbit: courts here tend to enforce NDAs as long as they’re reasonable in scope. That means you need to be specific about what’s covered and for how long. Blanket NDAs with no end date? Those are a no-go.

Remote Work Agreements: Navigating the New Normal

Remote work isn’t just a pandemic trend—it’s the new normal. But without a remote work agreement, you’re leaving a lot of gray areas.

Are employees expected to be online 9 to 5, or can they make their own hours? Who covers the cost if their internet goes down or their laptop needs replacing? What about cybersecurity protocols for accessing sensitive company data?

Maryland recently updated its cybersecurity laws to emphasize data privacy and remote work security. If your employees are accessing company systems from home, you need an agreement that spells out the rules. A breach doesn’t just cost money—it costs trust.

The Contract You’re Probably Missing: Cybersecurity Agreements

Now here’s the kicker. You’ve probably got the basics covered—employee contracts, client agreements, maybe even NDAs. But have you thought about cybersecurity agreements?

In 2024, cybercrime cost businesses around the world over $8 trillion. (That’s trillion with a “T.”) Maryland businesses aren’t immune, and if you’re storing customer data or working with IT providers, you need to protect yourself.

A cybersecurity agreement spells out who’s responsible for protecting data and what happens if there’s a breach. It’s the kind of forward-thinking move that separates the pros from the amateurs.

Why This Matters (and Why I Care)

Look, I’m not telling you this because I love contracts (though, admittedly, I kind of do). I’m telling you this because I’ve seen what happens when businesses don’t have their legal house in order. It’s not pretty.

You started your business to make an impact, to serve clients, or maybe to create the life you’ve always dreamed of. Contracts aren’t the dream—they’re the foundation that keeps the dream standing.

So, take a look at your agreements. Are they protecting you? Are they setting you up for success? If not, it’s time to fix that. And if you’re not sure where to start, you know where to find me.

After all, it’s not just about having contracts—it’s about having the right contracts. Let’s make sure you’ve got what you need.