Many people go into business with a partner because partners can provide support and additional capital for one another. Whether you go into business with a friend, family member, or someone who is simply a business partner, there is always the chance that you will disagree about an aspect of the operation at some point. A partnership dispute can either be addressed and handled quickly, or it can lead to the demise of the entire partnership. Having the guidance of an experienced business lawyer can increase the chances of a swift resolution and the continuation of your business.
Agreements Between Business Owners
Before a dispute ever arises—at the beginning of the business—is the ideal time to craft solutions for dealing with partnership disputes. Given that most businesses are incorporated as corporations or limited liability companies, business partners would well be advised to enter into a shareholder agreement or limited liability company operating agreement, as appropriate. Every business should have a carefully considered agreement (whatever specific type) that sets out the rights and responsibilities of each owner with respect to fundamental issues such as: decision-making authority in running the business, the rights of minority investors, the ability of an owner to transfer her shares to a third-party, and what happens upon the death or disability of an owner. These provisions will be covered in detail in a later post. This agreement should also include instructions on how to resolve disputes when they later arise. With this roadmap already in place, business owners can often just look to the agreement for a solution if they do have a dispute. To limit issues down the road, it is important to have your agreement drafted by an experienced attorney who understands all of the provisions that should be included.
Not every dispute has to be a costly legal battle. In many cases, a disagreement can be resolved by sitting down and effectively negotiating the matter. Having the representation of a skilled business attorney who understands how to negotiate resolutions can improve your chances of not having to take further action.
When negotiation fails to resolve a dispute, you may have to take the matter to court. While it is best to avoid litigation whenever possible, sometimes it is necessary. Litigation can either result in a court-ordered resolution to the dispute or result in a dissolution of the business entity. Before filing a legal claim, however, you should always weigh the benefits and possible drawbacks with your attorney and ensure you are represented by an experienced business attorney.
Contact a New York Business Law Attorney for Assistance Today
Going into business with a partner can be lucrative and rewarding, but you should never discount the possibility of a dispute arising at some point in time. A New York business law firm can help you take steps to prevent or prepare for ownership disputes, bringing you to an efficient and favorable resolution. Please call Braverman Law PC at (212) 206-8166 or contact us online to learn more about our business law services today.
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