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when a business owner is looking to bring on employees or consultants its really important to have sort of basic agreements in place with them and this will matter a lot when you sell your company when you bring on investors or just on the day-to-day basis theres really two basic agreements you want to have in place with employees one is an offer letter generally employees are at will the offer just describes the nature of the relationship how much theyre getting paid an initial position who they report to has some general legal terms possibly an arbitration provision but just outlines the general terms of the employment relationship so its all clear whats probably the more important agreement is whats called proprietary information and inventions agreement youll see people refer to these as P I IAS in writing a lot and not really does two things one is it requires the employee to keep information confidential and more importantly it provides that all work product and all inven