Transcriptionists who work as freelancers or run their own companies need a minimum of three basic documents to protect their rights, ensure fair compensation, establish clear expectations, and maintain professionalism. In this article, I’ll explain what those documents are and how they’ll help prevent problems that could be costly or time-consuming.
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What Documents Do Transcriptionists Need
First, you’ll need an LLC Operating Agreement. This agreement separates your personal assets from your business assets. It also describes how you manage your business, how your business will be dissolved, and how new members (business partners) will be added to your business.
Next, you must have a Client Contract. Also called a service contract, this document will include your scope of work, payment terms and late fees, cancellations and refunds, ownership of property, and a mediation agreement. Many transcriptionists also include disclosures noting compliance with public records acts and non-discrimination policies.
Finally, you’ll need a Freelancer Contract. This contract specifies that the transcriptionists, editors, and other individuals you hire are independent contractors, not employees. The document will also include a scope of work, payment terms, non-disclosure and non-compete policies, ownership of property, and a mediation agreement.
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Why Do Transcriptionists Need Contracts and Agreements
Freelance transcriptionists and owners of small transcription companies want to focus on creating accurate transcripts for their clients. Without the proper contracts and agreements, transcriptionists could spend more time trying to get clients to pay, resolving disputes, or navigating lawsuits. These efforts are time-consuming and expensive. Having a well-drafted contract can be instrumental in resolving issues without resorting to expensive legal proceedings. Additionally, utilizing contracts demonstrates professionalism and establishes credibility for transcriptionists.
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Clients are more likely to trust and hire transcriptionists who provide written agreements. The agreements reflect a commitment to delivering quality work and adhering to ethical business practices. These documents also minimize unfair competition by prohibiting others from using information about your business to steal your clients or the transcriptionists who work for you.
Where To Get The Necessary Documents
It’s easy for transcriptionists to find free, do-it-yourself templates online. However, you really need to invest in contracts and agreements written by a business lawyer. Contracts drafted by lawyers are more likely to be legally enforceable and upheld in court, offering a higher level of security if any party fails to fulfill their obligations. Lawyers use their expertise to draft contracts that are precise, leaving no room for ambiguity, which helps in avoiding misunderstandings. Additionally, a lawyer will ensure that the contract complies with all relevant laws and regulations, protecting the transcriptionist from potential legal pitfalls.
Free online templates are not guaranteed to provide any of those protections. For example, Legal Templates, which offers free contract templates, specifically states, “The accuracy, completeness, adequacy or currency of the content is not warranted or guaranteed.”
When I started my transcription company, I purchased all of my legal document templates from Amira Irfan. Amira is a business lawyer with a personal interest in helping small businesses protect themselves. She provides comprehensive templates that contain all of the critical components a transcriptionist needs. It is incredibly easy to customize her templates for your transcription services. All you have to do is enter your business information to complete the contracts.
Amira’s Freelance Bundle includes those three essential documents, an LLC operating agreement, a client contract, and a freelancer contract. If you have a website, I also recommend her Starter Legal Bundle, which includes all of the disclosures and policies necessary for your website to be in compliance with all of the laws that regulate your online presence.
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Having well-drafted contracts and agreements can provide peace of mind and professional credibility for transcriptionists who want to establish a strong foundation for their business relationships. Start protecting your transcription services now so you don’t end up spending time and money on a situation that could have been avoided.
