The 7 Business Contracts Every Illinois Small Business Should Have

Running a small business in Illinois is exciting— But without the right contracts, one bad, deal, or misunderstanding can cost you everything you’ve built.

Contracts aren’t just paperwork— they’re your legal protection. Having the right agreements in place keep your business safe, professional, and ready to grow.

Recently a local business didn’t get paid because they didn’t have a valid client agreement or a vendor agreement. They had gotten forms online and the forms were missing key provisions for Illinois. They ended up in a time consuming and expensive lawsuit that could have been avoided with a custom contract.

Here are the 7 must-have custom Illinois contracts every Illinois small business owner should have:

1. Client Agreement

A custom client agreement sets expectations for your services, payment terms, liabilities, timelines, and responsibilities. It helps you avoid scope, creep, late payments, and disputes.

2. Vendor Agreement

Whether you work with suppliers, service providers, or freelancers, vendor, agreements, protect your business, by spelling out pricing, delivery terms, property ownership, liability, quality standards, and remedies if things go wrong.

3. Employment Agreement

If you have employees, you need written, employment agreements. These cover roles, responsibilities, pay, benefits, confidentiality and termination terms—protecting both you and your team.

4. Independent Contractor Agreement

For 1099 contractors, this agreement clarifies that they are not employees, prevents IRS misclassification issues, defines payment, project, scope, and ownership of work created.

5. Non-Disclosure Agreement

An NDA keeps sensitive information private. Use it when sharing business ideas, client, lists, financials, or trade secrets with potential partners, vendors, or employees

6. Website Terms of Use & Privacy Policy

If your business operates online, you need Terms of Use (rules for your customers) and a Privacy Policy (how you collect and protect customer data.) Illinois and federal law require clear disclosures.

7. Lease or Real Estate Agreement

If your business rents or buys space, your lease agreement should clearly outline responsibilities for maintenance, repairs, rent increases, liabilities and exit options. A lawyer can help you spot traps that cost business owners thousands.

Why These Contracts Matter

Without these contracts, you leave your business highly exposed to lawsuits, tax penalties, and expensive disputes. The right agreement is not only protect you and your assets, but also make your business look more professional and trustworthy to clients and partners.

How Marketti Law Firm Can Help

At Marketti Law Firm, we make contract simple for small business owners in Frankfort, Mokena, New Lenox and across Will County, Illinois. With flat fees and approachable, empowering guidance, we draft and review the exact agreements you need to run your business with confidence.

Ready to legally protect your business with the right contracts? Schedule your free consultation today.