You will likely want to either have an offer letter or employment agreement and a Confidential Information and Invention Assignment Agreement (CIIAA) with each employee. An employee offer letter is used with most rank-and-file employees. In contrast, an employment agreement is occasionally used with a more limited set of key employees.
Every business has different needs when it hires a new employee. But regardless of company size or industry, it is always a good idea to present new hires with an offer letter that outlines some of the critical terms of the employment relationship to set initial expectations, introduce your culture, and minimize future legal risk. Most offer letters will include:
Employment agreements will amplify the topics covered in an offer letter and may discuss bonus potential, severance, equity grants, etc.
Note that many U.S. states provide significant protections for employees and certain contract provisions (like a covenant not to compete following employment) may not be enforceable and may even invalidate other portions of the agreement. If you expect to have significant employees in U.S. states, you should seek competent advice regarding labor and employment laws.