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Except for a sole proprietorship, enter your business entity's name and not a personal name as a party to the contract. Otherwise, Cohen adds, you will be personally on the hook and you have lost the limited liability that was likely one of your reasons for forming the entity in the first place. Never blur the distinction between you and the entity you own or represent.

You may want to have an attorney review and make suggestions on a template of your business contract. An attorney can pinpoint issues for your particular business that you may need to include in the agreement. You can use a business agreement template and modify it to fit your needs, rather than writing the agreement from scratch.

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