Going into business with a colleague is an exciting venture. Entrepreneurs know that there will be many challenges and threats along the way, but one they likely don’t suspect is partnership disputes. Partnership disputes are a common issue that can unravel and ultimately end a business. If you and your partner are starting to have major differences affecting your business, you should consider following these steps to get your company back on track.
If you need help protecting your business, contact our Philadelphia business law attorneys today at (610) 550-8042 to schedule a consultation!
#1: Seek Legal Guidance
If you are experiencing partnership disputes, you should seek legal guidance from an experienced business law attorney. It is vital that you and your partner reach a resolution that will resolve your current issues and set a solid foundation to avoid future problems. Our team at Weisberg Law can guide you and your partner to resolve disputes and protect your business successfully.
#2: Clarify Ownership
Before negotiating, you and your other partner must clarify the amount of ownership each of you has. Although this may be an uncomfortable topic, both of you should understand the value of your own property as this will help you during negotiations.
#3: Negotiate to Resolve Conflicts
With the help of your attorney, you and your partner can start negotiating in a private setting. It is vital that both partners understand that there will need to be some form of compromise to resolve issues and protect the business interests. An attorney can work with you and your partner during this process.
#4: Establish a Written Partnership Agreement
When partners start a business, they should create a legal document that clearly outlines their roles, responsibilities, and obligations as a partner. If you didn’t create a partnership agreement already, it’s not too late to establish one. Facebook was one of the many companies that dealt with partnership disputes — costing it billions of dollars in liabilities.
A partnership agreement can help solve and prevent major issues down the line. For example, suppose your strengths have always been business operations and finance, and your partners have been product development and marketing. In that case, you can list those as your responsibilities in your agreement. This way, partners can’t interfere with one another’s work.
My Partner and I Can’t Solve Our Differences. Should We Dissolve Our Business?
When business partners have irreconcilable differences, it can often cause the business to collapse. If you believe that you and your partner are at the tipping point, you need to look out for your best interests to make sure you receive a fair outcome in your business dissolution. Before reaching that point, it is vital that you attempt to resolve your disputes using the four steps listed above.
If you and your partner still can’t resolve issues after following the steps outlined above, you should then consider dissolving your business or finding an alternate solution.
How Can an Attorney Help Me & My Partner?
Partnership disputes can quickly impact your business. Countless businesses have been dissolved because partners didn’t set up a partnership agreement and had disputes that couldn’t be resolved. Partnership disputes attorneys are equipped to help business partners navigate uncharted waters with an outsider’s perspective.
Weisberg Law has worked with clients across Philadelphia and New Jersey to help them understand the scope of the dispute and what’s at stake. Our team takes the time to understand the facts at hand, get to know each partner, how they think, along with their objectives. We also identify legal issues at play in the disputes.
Contact our Philadelphia and New Jersey business partners dispute attorneys today at (610) 550-8042 to schedule a consultation!