SaaS Agreement Checklist for Tech Founders

What is a SaaS agreement?

A SaaS agreement is the contract under which a customer pays to use software you host, instead of buying a copy to install. It grants access for a subscription term, sets the fees and the service levels, and decides who owns the customer's data and the software itself. Most SaaS companies run on a small set of these documents, and the checklist names each one.

Unlike a perpetual software license, a SaaS agreement never transfers a copy of the code. The customer rents access, so uptime, data security and what happens to the data at the end of the term matter more than they do in a license.

Which legal documents does a SaaS company need?

The core set covers the customer contract, the customer's data and the company's own IP. Not every company needs every document on day one.

• Terms of service or a master subscription agreement (MSA). The main customer contract, covering access, fees, term and liability.
• Privacy policy. How you collect, use and share personal data. App stores and most privacy laws require one. Start from our free app privacy policy template.
• Data processing agreement (DPA). Required when you process personal data for business customers under laws such as the GDPR.
• Service level agreement (SLA). Uptime and support commitments, and the credits owed when you miss them.
• Acceptable use policy. What customers may not do on your platform.
• Order form. The plan, seats, price and term for each customer, signed under the MSA.
• Non-disclosure agreement (NDA). For partners, investors and pilot customers before you share anything sensitive.
• Founder, employee and contractor IP assignments. So the company, not the person who wrote it, owns the code.
• End user license agreement (EULA). For any part of the product people download or install, such as a mobile app.
• Business associate agreement (BAA). Needed if you handle protected health information for a HIPAA covered entity.

Which clauses belong in a SaaS agreement?

Whatever the document is called, a sound SaaS customer contract settles the same questions. Use this as a quick review list for your own terms.

When do you need each document?

Order them by stage. Before launch, put IP assignments, NDAs, your terms of service and a privacy policy in place. With the first paying customers, add order forms and an SLA. When enterprise or regulated customers arrive, expect to sign their DPA, a security addendum or a BAA. Before you raise, investors will check that the company owns its code and its brand.

Founder side vs customer side, what is different?

Most SaaS checklists online are written for buyers reviewing a vendor's contract. As the founder you are the vendor, so your priorities run the other way. You want a liability cap, a clear disclaimer of warranties beyond the SLA, ownership of every improvement to the product, and the right to suspend accounts that break the acceptable use policy. Expect enterprise buyers to push back on exactly those clauses.