Tag: Business Law

Business disputes happen. It doesn’t mean you failed, and it doesn’t mean your business is broken. What matters is how you respond—and that you protect what you’ve built.

1. First: Let Go of the Shame

If you’re in a business dispute right now or have been in one before, take a breath. Business conflict is not personal failure. It’s not something to be embarrassed about. Business law exists because these situations come up for all kinds of companies, from startups to large legacy corporations.

Most of the time, disputes aren’t even about anyone doing something wrong—they’re about misunderstandings, unmet expectations, or poor communication. That’s why it’s so important to take the emotion out of the process.

Stay grounded. No one is judging your business decisions. You’re learning, growing, and protecting your work—and that’s smart leadership.

2. Start Documenting Early

Before you respond, before you vent, before you hit send—document. A clear, simple timeline of what’s happened so far is incredibly helpful for you and any professional who may assist you.

Start with:

  • Key dates (when did things begin to go sideways?)
  • Email exchanges, text messages, voicemails
  • Contracts, invoices, service agreements
  • Notes from phone calls: who said what, and when?

Write it out like a story. Include everything, even if it feels small. Good documentation protects you and helps make your case clearer—whether you’re working toward resolution or preparing a legal defense.

3. When to Loop in a Lawyer (Hint: It’s Sooner Than You Think)

Many small business owners only think to call an attorney after they’re being sued. But truthfully, a short consult in the early stages can save thousands later.

Signs it’s time to call an attorney:

  • The other party isn’t responding and money is involved
  • You’ve received a formal demand letter or legal threat
  • A partner or vendor stops communicating altogether
  • You’re unsure how to phrase your next step and want to avoid triggering more conflict

A good business attorney isn’t there to escalate—they’re there to help you protect your business and resolve things with minimal drama. Sometimes, just having a lawyer send a clear and professional communication shifts everything.

4. You Don’t Have to Go to Court

Court is one option—but it’s rarely the first or best. Most business disputes settle long before a trial date. Mediation, negotiation, or even a well-phrased letter can bring parties back to the table.

Other resolution tools include:

  • Informal negotiation with legal guidance
  • Mediation (neutral third-party facilitation)
  • Contract revision and mutual exit agreements
  • Payment plans or refunds in exchange for waiving claims

In many cases, once emotions are out of the equation, both sides simply want closure. And closure doesn’t require court.

You Can Handle This

Disputes are part of business. They don’t mean you’re reckless or irresponsible. The real power move is addressing them with calm, clarity, and support from professionals who know how to navigate the landscape.

Protect what you’ve built. Pause before reacting. Document everything. Ask for help.

And always remember: it’s just business—and you’re not alone.

Want to be ready just in case? Download our printable guide: How to Handle a Business Dispute with Grace and keep it handy. It’s there for the moment you need it, with simple steps that protect your time, energy, and business.

Photo credit: Photo by Kampus Production: https://www.pexels.com

Running a business without written agreements puts you and your clients at risk for misunderstandings, missed payments, and legal disputes. It’s especially risky in today’s landscape, where chargebacks (where clients dispute charges through their credit card company) can result in the loss of money even if your policy is “no refunds.” Without a written agreement, you’ll likely be forced to refund payments—regardless of your stated policies.

The truth is, contracts, or as I like to call them, business agreements, don’t have to be complicated, written in legalese, or span 20 pages to be enforceable. What they need to be is yours—clear, written in simple language, customized to your needs, and signed by both parties. When I say don’t “copy/paste,” I mean just that. Yes, you can follow templates, but don’t insert language you don’t understand just because it looks professional.  

*** Required disclaimer: This is not legal advice, meant for educational purposes only, if you have a contract matter- please discuss with an attorney***

Okay, now on to our discussion. 

Here’s what your agreements should include:

1. Be Clear and Keep It Simple

Nobody likes legalese—trust me, nobody. Skip the formal jargon. If the agreement is for six months, say that directly. If there are four monthly payments, spell that out. People want clarity, and your agreement doesn’t need to be fancy to be enforceable. In fact, you can have a legally binding agreement on a napkin (there’s a famous case about this!). But, for professionalism’s sake, keep it concise and clear.

2. Use the QTIPS Framework

To ensure all bases are covered, use the QTIPS framework to guide you in writing your agreements:

  • Q: Quantity (6 sessions, 2 products, etc.)

  • T: Time of Performance (15 days, 6 months, etc.)

  • I: Identity of the Parties (Who’s involved? You and your client? Identify them!)

  • P: Price (What is the cost of the services/products?)

  • S: Subject Matter (What are they buying? Coaching? Products? Services?)

With this in place, there’s little room for confusion. For example: “This agreement between Me and You is for six 30-minute life coaching sessions over six weeks for $350.” All terms are clearly laid out.

3. Spell Out Your terms

This is a common area where business owners often leave gaps that later create headaches. If you have a no-refund term, write it down. If there are time restrictions for rescheduling (e.g., within 48 hours), state that upfront. Similarly, if you require deposits, payment in full before certain services, or have any other terms, include them in your agreement.

It’s far better to have customers review your contract terms before purchasing, rather than dealing with disputes later. Trust me, it’s less stressful to turn someone down upfront than to face a chargeback down the line.  And without getting too legally for you, we often treat policies and contract terms as different. 

Generally, we describe policies as applying to everyone equally in your business, regardless of the products or services they contract for.  “Our policy is to require 48 hours’ notice to change an appointment.” But a contract is between you and the other party specifically (QTIPS). You can negotiate a term. “I’m requesting the option to provide 24 hours’ notice to you due to the nature of my business.”  That term can be negotiated in an agreement between the two of you. 

So, if you are relying on your websites’ policies to fight a chargeback or otherwise prevent a refund, and it is not a term in the contract, there might be some stickiness with certain payment platforms or credit card issuers.  Please check with an attorney if you need guidance in this area. Us lawyers had weeks and weeks and weeks and weeks of law school and legal cases to read (I know, I’m exaggerating, or am I?) on the exciting world of contract terms. Exploring the exotic world of, “what terms are included in this scenario? That one? Is that an Oxford comma?”

4. Get Any Changes in Writing

Changes will happen. Whether it’s a change of schedule or an amendment to services, always get the changes in writing. Even something informal like, “We’ve agreed to change the dates for yoga sessions” should be clearly documented.

At a MINIMUM send an email documenting the changes to the agreement. You can send an, “I’m just following up our phone conversation with this email to ensure we have everything clearly documented……”  At the end of the email., “If you see something I left out or need to change, please hit reply and let me know.  It was great speaking with you earlier today.” Please do this as you get off the phone- not two days later. If you know that you will not get to it right away, have excellent notes. 

Even better? Send over the changes in a separate document, and you both sign.  Create a word document, send it to the other side, once it’s absolutely captured the changes, make a .PDF, send for signature or e-sign. As much as possible, keep everything signed and dated to avoid confusion.  Don’t rely on memory or scribbles on your notepad—put it in a formal writing!

5. Be Prepared to Enforce the Agreement

This part of business isn’t easy, but it’s necessary. You have to be prepared to enforce your agreements if the need arises. In my own business, I allow clients to pause services for a month or two if life happens—but we don’t just “cancel” agreements because life got in the way. We finish what we agreed to. My livelihood depends on it, and your business should be treated with the same respect.

You may never need to enforce an agreement, but if it comes to that, be firm. Ensure your agreements are followed and recognized.

6. Get Professional Legal Review for Complex Agreements

For more complex agreements, like buying or selling a business, purchasing or leasing equipment, or drafting partnership agreements, always consult an attorney. These types of agreements often involve significant risks, and it’s essential to get them right from the start.

If you can’t afford a full-time attorney or don’t want to hire someone long-term, there’s an excellent online resource called Contracts Counsel. This platform allows you to hire attorneys on a project basis to review or draft legal agreements tailored to your specific needs. It’s an affordable way to ensure your legal documents are in top shape.

A Final Note

While hiring an attorney may seem like an extra step, it’s an investment in the long-term stability and success of your business. Having a clear, legally binding agreement not only protects you but also gives your clients peace of mind, knowing that both parties are aligned in terms of expectations. Don’t let a misunderstanding or poorly crafted contract harm your business—take control of your agreements and protect your interests.

For California Business Owners

If you’re a small business owner in California and need help reviewing or drafting your contracts, I’m here to help. Reach out for a consultation, and we’ll ensure your agreements are legally sound and protect your business.

There’s a lot of buzz online about forming a Limited Liability Company (LLC) when starting a business—but before you dive in, it’s important to know: not everyone needs to rush into creating one.

Yes, an LLC can offer protection by separating your personal assets from your business liabilities. But forming one is more than just filling out paperwork—it comes with ongoing responsibilities, costs, and some legal realities that many business owners aren’t fully aware of.

Here’s what you need to know before you decide if an LLC is right for you:

1. You’re Creating a New Legal Entity

When you form an LLC, you’re establishing a brand-new legal “person” in the eyes of the law. You (and any business partners) become “members,” and the LLC becomes its own entity—typically a citizen of the state where it’s formed.

Even if you’re a solo entrepreneur, the LLC is not you. It needs to be treated accordingly. That means:

  • Filing renewals or reports annually (rules vary by state)

  • Getting a separate EIN (Employer Identification Number)

  • Opening dedicated business bank accounts

  • Keeping your business and personal finances completely separate

This isn’t optional. It’s the foundation of the legal protections an LLC offers.

2. Business Finances Must Be Kept Separate

This is where many business owners slip up. The LLC structure can protect your personal assets—but only if you treat the business like a separate entity in practice, not just on paper.

That means:

  • Paying yourself properly, via paycheck or owner’s draw

  • Avoiding using the business debit card for personal expenses (ever)

  • Documenting transactions clearly and maintaining clean records

If you mix personal and business finances, you risk “piercing the corporate veil,” meaning a court could disregard your LLC and hold you personally liable. In short: if you don’t treat the LLC as separate, neither will the law.

3. Tax Benefits Aren’t Always Immediate

LLCs can offer potential tax benefits—but these depend on how the entity is structured and how much revenue the business generates.

For example, electing to have your LLC taxed as an S-Corp may reduce self-employment taxes once your profits hit a certain threshold. But if your business isn’t generating significant income yet, the difference may be minimal.

Talk to a tax professional before choosing a structure—what works for one business may not make sense for yours.

Understand the Benefits and the Costs

Online platforms make LLC formation seem quick and easy—which it can be. But they often don’t mention the hidden costs of maintenance and compliance.

In some states, LLC renewals and franchise taxes are expensive. One of my clients, for example, pays $800 annually just to keep her LLC active.

Before forming an LLC, ask yourself:

  • What assets am I protecting?

  • What are my state’s annual fees and reporting requirements?

  • At my current income level, are there any real tax advantages?

Final Thoughts

Forming an LLC can be a smart move—but it’s not the only path to legitimacy or success in business. Make sure you understand the responsibilities and the financial impact before moving forward.

Talk to a tax professional or legal advisor who understands your business. And don’t be afraid to start as a sole proprietor while you build. There’s nothing wrong with laying a solid foundation first.