In a perfect world, running a veterinary clinic would be limited to caring for animals. The truth is that it is much more complicated – it’s about managing a complex business with high-stakes legal obstacles, decisions, and considerations. Missteps can cost more than just money. Here are a few things that every veterinarian needs to know to help protect their clinic and their career.
Entity Formation and Ownership Structure
Whether you’re starting a new clinic or restructuring an existing one, choosing the right entity type (e.g., LLC, PLLC, S-corporation, or professional corporation) is foundational. A well-structured legal entity protects personal assets, minimizes tax exposure, and accommodates future growth or transition plans. For multi-doctor practices, ownership agreements and buy-sell provisions are critical for preventing disputes down the road.
Licensure and Regulatory Compliance
Veterinary clinics must comply with a web of state veterinary board regulations, DEA registration requirements, controlled substance rules, and local business licensing laws. Legal counsel can help interpret state veterinary practice acts, ensure that non-veterinarian ownership does not violate corporate practice of medicine laws (where applicable), and maintain compliance with recordkeeping, telemedicine, and advertising standards.
Employment and Independent Contractor Agreements
Veterinary clinics employ a range of professionals — from associate veterinarians and vet techs to front office staff and groomers. Well-drafted employment agreements, non-compete provisions, and clear independent contractor classifications help reduce risk and protect the clinic’s goodwill. Attorneys also guide compliance with wage-and-hour laws, OSHA regulations, and employee benefit plan administration.
Client Services and Liability Management
Informed consent forms, boarding contracts, and euthanasia releases should be reviewed through a legal lens. These documents protect the clinic from claims and help ensure clarity in the client relationship. In cases involving treatment errors or disputes, legal counsel can assist in managing reputational risk and mitigating liability exposure.
Real Estate and Lease Agreements
Whether a clinic owns its facility or leases space, real estate is often a major investment. Lease agreements should account for zoning issues, tenant improvements, and veterinary-specific use clauses. For owned property, proper corporate structuring can protect the practice’s operating business from real estate-related liabilities.
Practice Transitions and Succession Planning
Veterinary practices often change hands due to retirement, relocation, or acquisition. A business attorney helps navigate the complexities of asset sales, equity transfers, and associate buy-ins. Succession planning is particularly important for preserving the clinic’s value, ensuring continuity of care, and honoring the legacy of the founding veterinarian.
Mergers, Acquisitions, and Private Equity
As consolidation increases in the veterinary space, more clinics are approached by corporate buyers and private equity firms. An experienced attorney can assist with due diligence, negotiation of purchase agreements, earnout provisions, and post-sale employment arrangements to ensure the transaction aligns with the seller’s goals and values.
Final Thoughts
Veterinary medicine is as much a business as it is a calling and business success requires a solid legal foundation. Whether you’re launching a new clinic, expanding your team, or planning for a future transition, a business attorney who understands the veterinary industry can be a trusted advisor and strategic partner.
If your clinic is ready to take the next step, whether in compliance, contracts, or ownership, we’re here to help you build with confidence. If you have questions regarding this blog, please contact Caleb Brus.
