{"id":5572,"date":"2021-08-18T11:42:50","date_gmt":"2021-08-18T16:42:50","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/what-is-a-non-disclosure-agreement.html"},"modified":"2026-05-29T00:15:00","modified_gmt":"2026-05-29T05:15:00","slug":"what-is-a-non-disclosure-agreement","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/what-is-a-non-disclosure-agreement.html","title":{"rendered":"Non-Disclosure Agreements for Small Businesses"},"content":{"rendered":"\n
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Non-Disclosure Agreements for Small Businesses<\/h1>\n\n
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\n By Amber Sheppard, Esq.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last reviewed\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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A non-disclosure agreement (NDA) is a legally binding contract used by small businesses and individuals to protect confidential and proprietary information from unauthorized disclosure.<\/p>\n\n <\/div>\n\n\n\n

When it comes to protecting sensitive information<\/span> for small <\/span>business<\/span> owners<\/span>, there is no better document to use than a non-disclosure agreement<\/span> (NDA<\/span>). NDAs<\/span> commonly cover confidential information<\/span> such as new <\/span>product<\/span> development<\/span>, customer lists<\/span>, future business plans<\/span>, pricing<\/span> information, or pending litigation.<\/p>\n

Learn what goes into an NDA<\/span>, when to sign it, and business law consequences when someone breaks it below.<\/p>\n

What Is a Non-Disclosure Agreement<\/span>?<\/h2>\n

Non-disclosure agreements<\/span> (NDAs<\/span>) are legal contracts<\/span> small businesses<\/span> and individuals use to protect confidential information<\/span>. The receiving party<\/span> of the NDA<\/span> cannot disclose that information. It\u2019s often called a confidentiality agreement<\/span>. NDAs<\/span> keep sensitive information<\/span> between the receiving party<\/span> and the disclosing party<\/span>.<\/p>\n

Types of confidential information<\/span> you might find in an NDA<\/span> include:<\/p>\n