Entrepreneurs run into legal troubles in their business ventures when they fail to educate themselves with the different local, state, and federal laws.  Understanding those laws and how it applies to your particular business will help direct the structure that best fit your needs while at the same time staying within both legal guidelines and setting a good foundation on your business.  All of the different structures have both advantages and disadvantages that entrepreneurs need to understand because it can affect a multitude of things and range from least legal protection structures like sole proprietor and partnerships, all the way to most legally protected legal entities like C-Corps and Non-Profits.  If for any reasons Entrepreneurs feel overwhelmed or unsure of anything, they should consult legal counsel that have experience with new entrepreneurial ventures.  I think another reason entrepreneurs get in trouble with the law is because of the company that they keep around them.  It is important to understand that you know the people whom you are going into business with extensively and avoid doing business with people and or companies who have bad reputations or any sort of history with litigations.