Even if you’re the only person in the business
If you’re a freelancer and you’ve set up a limited company, chances are you’ve spent more time thinking about onboarding your clients than onboarding yourself.
You might have contracts in place for your clients. Maybe an invoice system linked to your accountancy software. Heck, maybe even your own set of T&Cs.
But… do you have a Directors Agreement?
Wait – a Directors what?
A Directors Agreement (sometimes called a Director Service Agreement) is a formal document that outlines your role, responsibilities and entitlements as a Director of your own company.
And before you say, “But it’s just me!” – that’s exactly why you need one.
Because when you are the business, you’re also the one most at risk of being overlooked.
Why this matters for freelancers
Freelancers wear all the hats – designer, facilitator, tech support, tea-maker – and it’s easy to let the businessy bits slide when you’re busy delivering.
But here’s the thing: if something goes wrong – you get ill, want to wind down the business, or you’re thinking of growing or selling – you’ll wish you had something solid in place that showed what you actually do, what you’re paid, and what you’re entitled to.
Real talk: this has gone wrong before
Tracy from MintHR has seen what happens when it goes wrong. A freelancer builds a brilliant business, works for years through a limited company, but never formalises their role. The business folds, and there’s nothing on paper to say what they were owed or how long they’d been involved.
No contract. No claim. Nothing.
Just because you’re listed on Companies House and registered with HMRC doesn’t mean you’re protected. You need proper documentation to back it all up.
So what does a Directors Agreement do?
It’s the contract between you and your company.
It lays out things like:
- What your responsibilities are (hint: more than just “doing the work”)
- Your salary, dividends, or other benefits
- What happens if you step away from the business
- Intellectual property ownership – especially important if you’re creating original content
- Confidentiality and data protection (yep, even if it’s just you)
Even if you’re not planning on growing a team or selling the business, this stuff still matters.
Think of it like this…
You’d never dream of starting work with a client without a contract.
So why treat yourself any differently?
Having a Directors Agreement is a sign that you take your business – and yourself – seriously. It makes things clearer for you now, and it protects you later.
Final thought
You are the business.
Make sure you’re not left out of the paperwork.
Get yourself a Directors Agreement that actually reflects what you do and what you’re worth.
It doesn’t need to be complicated – but it does need to be done. And if you’re not sure where to start, find a legal professional who understands freelancers and small business owners.
Because safeguarding your business should always include safeguarding you.
If you’re feeling like a Directors Agreement is your next smart move, MintHR are giving members of L&D Free Spirits 10% off their bespoke agreement.
Log into the website and head over to Insider Deals for more info.
