Choosing the Right Business Structure for Your Small Business
April 13, 2022

Whether you’re just starting out or growing an existing business, the structure you choose for your business is more than just a piece of paper. It can affect everything from daily operating decisions to your tax status, and ultimately your ability to attract investors and meet long-term goals.


Thinking about company culture and what you hope to achieve can be a good starting point for identifying the structure that best meets the needs of your business. You’ll also want to consider such factors such as:


  • Number of owners
  • Type of business and level of risk in the industry
  • How owners will share decision-making powers
  • Profit sharing
  • Available tax advantages and avoiding double taxation
  • Risk to your personal assets for the debts and liabilities of the business
  • Ability to raise capital and/or attract investors
  • Ownership transferal
  • Ease and expense of formation


Types of Business Structures


The choice of business structure often comes down to weighing the amount of control you want to maintain against the level of protection from liability you need. The most common types of business structures are sole proprietorships, partnerships, limited liability companies, corporations, and co-operatives.


1. Sole Proprietorship


This is often the simplest type of business structure, in which one person maintains sole ownership and complete control of the business. The owner and business are considered a single legal entity for purposes of taxes – and the owner is personally liable for business debts. Sole proprietorships are typically easy and relatively inexpensive to set up, but do not offer the separation of personal from business assets. As your business grows, you may seek more protection of your personal assets from business liabilities.


2. Partnership


A partnership is owned by two or more individuals. In a general partnership, control and assets are owned equally. A limited partnership allows you to create different levels of control and profit-sharing among partners. Typically, an attorney will draft and/or review a partnership agreement, which may add some time and expense over a sole proprietorship structure.


3. Limited Liability Company


A limited liability company (LLC) allows business owners to take advantage of the tax benefits and flexibility of a partnership, while protecting themselves from personal liability. An LLC can be more expensive and time-consuming to set up than a partnership or sole proprietorship and may involve federal or state reporting requirements.


4. Corporation


A corporation is its own entity, with its own legal rights apart from the owners. This structure is generally more appropriate for larger, more established businesses. It maximizes personal protection from liability but comes with more costs and reporting requirements and less decision-making flexibility.


5. Co-operative


A co-op is owned by “user-owners” who use the services of the business. Forming a co-op can be complicated but may allow for federal start-up grants, and discounts and benefits for its members.


Contact Deppman Law PLC Today


The optimal structure for your small business may not fall neatly into one of these categories. The contracts and agreements that form businesses can be uniquely tailored to your needs – and you can restructure as you grow your business. An experienced VT small business attorney can ensure that all tax and legal implications are addressed and help choose the structure that best meets the individual needs and goals of your business. Contact Deppman Law PLC today at 802-388-6337 for a confidential consultation about your case.

What Happens to the House in a Vermont Divorce?

March 21, 2025
For many couples, the family home is more than just their biggest financial asset—it’s also where memories were made, children were raised, and routines were built. So when a marriage ends, one of the most emotionally and financially significant questions becomes: What happens to the house? In Vermont, there’s no one-size-fits-all answer. The outcome depends on a range of factors, including how the property was acquired, whose name is on the deed, and what’s considered “equitable” under state law. Vermont Is an Equitable Distribution State Unlike community property states, where marital assets are divided 50/50, Vermont follows equitable distribution rules. That means the court aims for a division of property that is fair, but not necessarily equal. When it comes to the house, the court will look at the full picture to determine who should receive it—or whether it should be sold. Is the Home Marital Property? The first step in deciding what happens to the house is to determine whether it’s considered marital property or separate property. Marital property generally includes any property acquired by either spouse during the marriage, regardless of whose name is on the deed. Separate property is usually property owned by one spouse before the marriage, inherited individually, or received as a gift—though even separate property can become marital under certain conditions. For example, if one spouse bought the home before the marriage but both spouses contributed to the mortgage or improvements, the house (or at least part of its value) may be treated as marital property. What Factors Does the Court Consider? When deciding what to do with the house, Vermont courts look at a number of factors to determine what’s fair. These include: The length of the marriage Each spouse’s contributions (financial and non-financial) The needs of any children Each spouse’s earning potential and financial circumstances Whether one spouse wants to keep the home and can afford to do so Whether one spouse has primary custody of the children and would benefit from staying in the home Common Outcomes for the House in Divorce Depending on the circumstances, there are several ways the home can be handled: 1. One Spouse Buys Out the Other If one spouse wants to keep the home, they may buy out the other spouse’s share. This typically involves refinancing the mortgage in their own name and paying the other spouse their portion of the home’s equity. 2. The Home Is Sold and the Proceeds Are Split This is often the simplest option, particularly if neither spouse can afford to keep the house on their own or if neither wants it. The couple sells the house and divides the equity according to the divorce agreement or court order. 3. One Spouse Stays Temporarily In some cases, especially where children are involved, one spouse may stay in the home for a set period of time (e.g., until the youngest child turns 18), after which the home is sold and the proceeds divided. 4. Both Spouses Continue to Co-Own Rare, but possible—especially if the real estate market is poor or the home has sentimental value. This requires careful planning, clear agreements about expenses and responsibilities, and an exit plan. Don’t Forget the Tax and Mortgage Implications Whatever the outcome, it’s important to consider: Mortgage liability— If both spouses are on the mortgage, both are responsible—even if one moves out. Capital gains taxes— Selling a home may trigger taxes on the profit, though married couples can often exclude up to $500,000 in gains if certain conditions are met. Refinancing challenges— The spouse keeping the home must qualify on their own for refinancing. These financial and tax issues are why it’s important to work with both a divorce attorney and a financial advisor during this process. Need Help Managing Property Division? Contact Deppman Law PLC Dividing property—especially the family home—can be one of the most difficult aspects of divorce. At Deppman Law PLC , we’re here to help you understand your rights, evaluate your options, and reach a fair and sustainable resolution. Contact us today for a confidential consultation about your case.

What Counts as a “Just Cause” for Eviction in Vermont?

February 19, 2025
In Vermont, tenants enjoy strong legal protections, and landlords must follow specific procedures when seeking to remove a tenant from a rental property. One of the most important requirements is having “just cause” for the eviction—especially when dealing with month-to-month or subsidized tenancies. At Deppman Law PLC , we regularly advise both landlords and tenants on their rights and responsibilities under Vermont’s landlord-tenant laws. Today, we’ll walk through what “just cause” means, what qualifies, and how the rules apply depending on the type of tenancy. What Does “Just Cause” Mean? “Just cause” means that a landlord must have a legally valid reason to evict a tenant. In many Vermont municipalities—including Burlington and other communities with local rental ordinances—just cause eviction laws are in place to prevent landlords from evicting tenants arbitrarily or without reason. Even where no local ordinance exists, state law still provides baseline protections. For subsidized housing (such as Section 8 or other public housing programs), federal and state rules require landlords to have just cause before terminating a lease—even at the end of the lease term. Common “Just Cause” Grounds for Eviction in Vermont While the specific language of just cause ordinances can vary slightly from one locality to another, the following are widely recognized as legal grounds for eviction in Vermont: 1. Nonpayment of Rent This is one of the most common reasons for eviction. If a tenant fails to pay rent on time, a landlord may serve a notice to pay or quit. If payment isn’t made, the landlord can file for eviction—but only after giving proper notice, typically 14 days under Vermont law. 2. Violation of Lease Terms If a tenant breaches a condition of the lease—such as subletting without permission, having unauthorized pets, or damaging the property—the landlord may pursue eviction. However, landlords must give the tenant written notice of the violation and may be required to give them time to correct the issue. 3. Illegal Activity Engaging in illegal activity on the premises, such as drug use or distribution, may be grounds for immediate eviction. The landlord must still provide appropriate notice and evidence of the conduct in court. 4. Material Health and Safety Violations If the tenant is creating conditions that endanger health or safety—for example, hoarding, failing to dispose of garbage, or disabling smoke detectors—these actions may support a just cause eviction. 5. Owner Move-In or Substantial Renovation Some Vermont cities allow eviction if the landlord or a family member intends to move into the unit or if the property requires major renovations that necessitate vacancy. This must be handled carefully and often requires advance notice (typically 90 days) and documentation. 6. Refusal to Sign a New Lease (If Reasonable) If a tenant refuses to sign a lease renewal with reasonable and legal changes, this may be considered just cause for non-renewal or eviction. What Is Not Just Cause? Landlords cannot evict tenants for discriminatory reasons, retaliate against tenants for asserting their legal rights (like complaining to the health department), or remove tenants without cause if local ordinances require it. For example: A tenant cannot be evicted simply because the landlord wants a different tenant. You cannot evict a tenant for reporting code violations or requesting repairs. You cannot remove a tenant based on race, gender, family status, religion, or other protected categories under state and federal fair housing laws. Just Cause Requirements Vary by Municipality Some Vermont towns and cities—most notably Burlington —have their own “just cause eviction” ordinances that provide additional tenant protections. For example, Burlington’s ordinance passed in 2022 requires landlords to have just cause for any termination of a residential lease, including month-to-month leases. Landlords operating in these municipalities must be careful to comply not only with state law but also with local ordinances, which may require longer notice periods or restrict certain grounds for eviction altogether. The Importance of Proper Procedure Even with just cause, landlords must follow specific legal procedures for eviction. This includes: Serving the correct type of notice (14, 30, or 60 days depending on the cause and lease type) Filing a court complaint if the tenant doesn’t vacate Obtaining a court order for eviction— self-help evictions are illegal in Vermont Failure to follow these steps can delay the process and may expose the landlord to legal liability. Contact Deppman Law PLC Today Whether you're a landlord trying to understand your rights or a tenant facing eviction, Vermont’s landlord-tenant laws can be complex—and the consequences of missteps can be serious. At Deppman Law PLC , we help clients across Vermont resolve rental disputes, comply with local ordinances, and protect their legal interests. Contact us today to schedule a consultation and get experienced guidance tailored to your situation.