Building a business is like building a home. You would not use drywall to support a home, because it would not survive the elements (rain, storm, etc.) and would result in a loss of substantial investment. Similarly, contracts are support beams for businesses. If you don't utilize solid comprehensive business contracts, the business investment is at substantial risk.
Further to the analogy, proper entity establishment and maintenance is the "foundation" of a business, just as cement is typically the foundation of a home. You would not invest in a home without a proper foundation. Consider the risks involved in investing in a business that does not have a proper entity foundation and/or fails to properly maintain such entity.
If you must "skimp" with regard to the home, skimp on the decor not the foundation or the supporting structure. In a business, if you must skimp, then skimp on the "fluffery" not the entity establishment, entity maintenance or the contracts.
Entrepreneurs should also seriously consider the effectiveness of their efforts to protect the intellectual property of the business, for example, Trademark registration, Copyright Registration and proper Notices, Patent Registration, proper methods and efforts to maintain Trade Secret Protection, etc.
Keys to success: Knowledge • Informed Decisions • Execution of Evolving Plan