Running a small business involves balancing opportunity and risk. While disputes can’t always be avoided, many legal problems can be prevented with proactive planning and clear communication.
Here are several ways small business owners can reduce legal risk before issues arise.
Choose the Right Business Structure
The legal structure of your business affects liability, taxes, and operations. Forming the right entity can help protect personal assets and clarify ownership responsibilities from the outset.
Use Clear, Written Agreements
Handshake deals and informal arrangements often lead to misunderstandings. Well-drafted contracts with customers, vendors, and partners help set expectations and reduce disputes over payment, performance, deliverables, or scope of work.
Review Commercial Leases Carefully
Commercial leases often contain long-term obligations and hidden costs. Understanding lease terms before signing can prevent costly surprises and future conflicts with landlords.
Address Employment Issues Early
Clear policies, proper classification of workers, and consistent practices can help prevent disputes with employees or contractors. Early legal guidance can help ensure compliance and reduce exposure.
Plan for Disagreements
Even healthy businesses encounter conflict. Including dispute resolution provisions in contracts and addressing issues promptly can help resolve problems before they escalate into litigation.
Proactive legal planning isn’t about expecting failure—it’s about building a strong foundation that allows your business to operate with confidence and flexibility.
Call Deppman Law PLC
If you own or are starting a small business and want to reduce legal risk before problems arise, Deppman Law PLC can help. We work with Vermont business owners to put practical safeguards in place and address issues early. Contact Deppman Law PLC to schedule a consultation and protect your business’s future.

