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.

Understanding Vermont’s Property Disclosure Requirements

September 18, 2025
What sellers must legally share with buyers…and what happens if they don’t Selling a home or property in Vermont involves several legal steps, but one of the most important — and often overlooked — is the requirement to disclose information about the property’s condition. Unlike some states where detailed, standardized disclosure forms are required by law, Vermont takes a slightly different approach. Still, sellers are obligated to provide accurate and truthful information about the property, particularly regarding any known defects or issues that could impact its value or use. Do I Have to Disclose Defects When Selling My Property in Vermont? In Vermont, there is no statewide mandatory property disclosure form required by law. However, Vermont courts have clearly established that sellers must not make material misrepresentations or intentionally withhold information about known defects. In simple terms: you don’t have to volunteer every detail, but you can’t lie or conceal something significant. Because of this, most sellers — especially those working with real estate agents — complete a Property Information Report or another disclosure form anyway. These documents typically cover the age and condition of systems like plumbing, roofing, electrical work, heating, water supply, septic tanks, and more. Sellers may also be asked to disclose whether the home contains asbestos, lead paint, structural damage, or boundary disputes. If a seller is unsure about a particular item (like the age of a roof), they can state that they're uncertain — but they cannot knowingly provide false information. What Counts as a “Material Defect”? A material defect is any issue that could affect the value or livability of the property. Examples include: A leaky roof or foundation cracks Water damage or mold problems A malfunctioning water heater or furnace Infestations Boundary disputes or title issues Unsafe drinking water or septic system failure Hazardous materials, such as asbestos or a buried oil tank If a seller is aware of such issues and fails to disclose them — or worse, attempts to hide them — they could be held liable for fraud or misrepresentation, even after the sale has closed. What Happens If a Seller Fails to Disclose a Known Issue? If a buyer later discovers an undisclosed problem with the property, the seller could face legal consequences, such as: Paying for repairs or replacement of damaged or defective systems Compensating the buyer for a loss in the property’s market value Cancellation of the sale , in extreme cases Punitive damages if the court finds evidence of willful fraud The burden is often on the buyer to prove that the seller knew about the defect and intentionally failed to disclose it. That’s why many buyers in Vermont choose to work with qualified real estate attorneys and inspectors when purchasing property, especially when buying older or rural homes. What About “As Is” Sales? Even if a property is sold “as is,” a seller is still responsible for disclosing any known material defects. The “as is” clause simply means that the seller will not make repairs before the sale — not that they’re excused from telling the truth about the property’s condition. Best Practices for Sellers To minimize risk: Be honest about the property, even if it means disclosing costly issues. Use standardized property disclosure forms, even if not technically required. Keep records of inspections, repairs, and maintenance. Consult an attorney if you’re unsure about what to disclose. Disclosing a defect upfront is almost always cheaper — and far less stressful — than dealing with a lawsuit later. Need Legal Guidance? Buying or selling property in Vermont can be complicated, especially when it comes to disclosure obligations. At Deppman Law PLC, we help clients manage real estate transactions with clarity and confidence. Contact our office today to discuss your real estate questions and ensure your transaction is handled the right way, with the protection and peace of mind you deserve.

Gray Divorce—Unique Challenges for Couples 50 and Up in Vermont

August 20, 2025
Understanding retirement accounts, health insurance, and estate planning in later-life divorce Divorce is challenging at any age. But when it occurs later in life, it comes with a unique set of emotional, financial, and legal considerations. Known as “gray divorce,” this trend is on the rise nationwide, and Vermont is no exception. Whether it’s a couple who’s grown apart after decades together, a second marriage that didn’t work out, or an unexpected separation due to changing needs or values, older Vermonters face specific challenges when untangling their lives. If you’re over 50 and thinking about divorce — or already in the process — it's important to understand how Vermont law impacts key issues like retirement savings, health insurance, and long-term financial security. Dividing Retirement Benefits in Gray Divorce One of the biggest financial concerns for older couples is how divorce will affect retirement savings. In Vermont, retirement accounts — including 401(k)s, pensions, IRAs, or other investments — are generally considered marital property if they were earned or contributed to during the marriage. These assets are subject to equitable distribution — meaning a fair division, not necessarily an equal one. However, splitting retirement accounts is not as simple as taking a number and dividing it in half. Depending on the type of account, you may need a Qualified Domestic Relations Order (QDRO) or other legal tools to divide funds without triggering taxes or penalties. A thoughtful approach is key to ensuring both spouses can maintain financial stability during retirement. Health Insurance After Divorce In a gray divorce, health insurance can be a major issue — especially if one spouse has been relying on the other’s employer-based coverage. Once the divorce is finalized, coverage typically ends for the non-employee spouse. Here are options to consider: COBRA— Allows temporary continuation of coverage (at full cost) for up to 36 months. Vermont Health Connect— Offers individual health insurance plans, sometimes with subsidies depending on income. Medicare Eligibility— If one or both spouses are 65+, Medicare may be available — but understanding enrollment timelines and supplemental coverage options matters. Making the right choice can have a significant impact on both cost and quality of care during your later years. Estate Planning Must Be Updated Many divorcing couples overlook estate planning — but for those 50 and older, it’s essential. A divorce should prompt a full review of all important documents, including: Wills and trusts Powers of attorney Health care proxies Beneficiary designations (insurance policies, retirement plans, etc.) These documents likely name a spouse in key roles — and unless updated, they may leave your ex-spouse with unintended control over your medical, financial, or estate matters. Vermont courts encourage this reassessment to ensure your future wishes are clearly and legally defined. Emotional and Lifestyle Impacts Gray divorce isn't just about finances — it's about rebuilding life at a stage when identities are deeply intertwined. Many older adults face questions like: Where will I live now? How will I manage life alone after decades of marriage? What does my social circle look like now? Navigating these questions with support — both legal and personal — can help create a healthy path forward. Legal Guidance During a Later-Life Divorce At Deppman Law PLC, we understand the financial and emotional complexities of gray divorce in Vermont. Our goal is to help you make confident, informed decisions about your future. Contact our office today to schedule a consultation and ensure that your next chapter is protected, both legally and financially.