Creative Strategy - Contracts

CONTRACTS - what are they?

- legal agreements that work to protect you
- set out the expectations of both parties
- can be used to for fee settlement in the event of contract termination

BASIC ELEMENTS

- the work to be undertaken
- timeframe to be completed in
- project requirements
- payment; how? when? fixed term?
- IP ownership
- usage/ resale rights/ licensing

WORK & TIMEFRAME

!!! be as specific as you can

Stipulate - number of days/ milestone/ number of revisions without charge (3 minor)/ kill agreement

- make sure you are provided with all the necessary information and assets

PAYMENT

- where possible, take up to 30-50% up front
- big initial costs should be paid up front e.g. materials
- make terms very clear e.g. 30 days, late fees etc
- do not release final files until payment is received & license your work

STARTING OUT

- register your business on companies house as either sole trader or limited company
- consider your investments or pensions

Sole Trader 
- work by yourself or as a small partnership
- establish a business name
- open a separate business bank account
- register with HMRC, pay tax and national insurance
- VAT only paid over £85,000
- keep records of all business transactions
- legally responsible for any business debts if things go wrong

Limited Company
- not personally responsible for any business issues
- more tax efficient
- have to file annual accounts and corporation tax