How to Create a Business That Can Survive Disputes

Starting a business is exciting and can lead to amazing opportunities and connections that you may have never expected. Bringing in business partners and employees is a great way to increase your bandwidth and expand your long-term goals. The more your business grows, however, the more likely you are to encounter disputes of some kind. You will likely run into operating issues, employee disputes, or even client or customer disputes with your services. Although disputes are inevitable, that doesn’t mean that you have to leave your business open to liabilities. This blog will cover some of the basics of building a business with a solid foundation to avoid unnecessary litigation down the line.

The Right Legal Structure

Part of your vision and business plan strategy is establishing a legal framework that sets you up for success. The chosen legal framework will depend on the type of business you run, but will impact taxes, ability to raise capital, potential liabilities, and the costs associated with startup and maintenance. There are pros and cons for each structure change based upon the needs of your business. Examples include: sole proprietorship, partnership, Limited Liability Company (LLC), and corporation, among others. If you plan to grow (or start) your business to have dozens or hundreds of employees, for example, a sole proprietorship, might leave your personal assets open for liability, so it’s important to consider each option carefully.

Utilizing Contracts to Your Advantage

One of the most important aspects of society is the concept of contracts. This is especially true for businesses of any size. From the time you set up your business, to establishing a service with a potential client, setting up contracts builds a framework that can protect your business from disputes and liabilities. For example, if you’re setting up a new client with your services, you need to hash out every detail. As a graphic designer, entertainer, or even a phone service provider, there needs to be a contract that outlines the exact services that will be provided, the length of time for the service, and of course: how to collect the payment, and the consequences of payment failure. 

Establishing an operating agreement is a great option for all businesses because it outlines the responsibilities of all involved parties, policies, regulations, and decision-making procedures. Key among these policies includes dispute resolution. Whether it’s between two employees, two founders, employee against company, or even between the company and the client, the dispute resolution sets up the framework for avoiding litigation by setting clear expectations for all parties. If an employee has an issue with the way they’re treated at work, does the business have a structure for resolving the dispute through mediation, or in some cases, arbitration (which may or may not be legal, depending on the issue)? All of this will impact how your business is run on a daily basis.


Preparing for legal disputes starts from the ground up. With a foundation that is built to withstand all potential liabilities, disputes can be solved swiftly and even sometimes amicably. You may not be able to prevent a dispute, but you can prepare for them. Working with an experienced attorney who can not only help address contract disputes but also empathize with your unique situation can improve your chances of a positive outcome. If you have questions about your business contracts, or need legal assistance with business disputes, call our office at (844) 835-2993 for a free consultation today.

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Carla D. Aikens, P.L.C.

When it comes to the mission and values of the law firm of Carla D. Aikens, P.L.C., there are two words which provide the foundation for everything we do: honesty and integrity. We would be honored to represent you with honesty and integrity in every facet of your case. Please do not hesitate to give us a call or send us an email to schedule your free consultation.

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