Why and When Small Businesses Should Use NDAs

Legal Tip of the Week: A Non-Disclosure Agreement (NDA) is one of the simplest and most effective tools to protect your business’s confidential information. NDAs are recommended whenever you need to share sensitive information with employees, contractors, vendors, or potential partners—such as business plans, customer lists, proprietary processes, or financial data.

Using an NDA before any discussion involving your intellectual property or trade secrets helps ensure that your ideas remain yours and gives you legal recourse if information is misused. Even if you trust the other party, having a signed NDA sets clear expectations and can deter future disputes.

If you’re unsure whether your situation warrants an NDA, it’s always best to consult with an attorney. A well-drafted NDA tailored to your business can safeguard your competitive edge.