Articles Tagged with Partnership Disputes

AdobeStock_1718544181-2-300x171Business partners, whether as members of an LLC, or Directors or Shareholders within a corporation, often find themselves at loggerheads regarding both short-term and long-term objectives. Unfortunately, when partners don’t see eye to eye, they can compromise the success of their venture and increase the risk of litigation. At Structure Law Group, LLP, we regularly represent partners in various disputes and encourage you to contact an Oregon partnership lawyer to discuss the next steps and provide advice to move forward. Below, we look at some of the most common partnership disputes we help resolve.

Disputes Related to Employee Hiring and Retention

As a partnership grows, if often becomes necessary to hire additional staff. This is a critical moment, and one with real consequences. Often, partners disagree about who is the best hire, as well as whether it’s time to let an employee go. For example, some partners seek to hire family members, while others might not believe they are the right choice. Ideally, these business partners executed a clear, written agreement that addresses these questions. Practically speaking, this is often not the case. In such situations often call for deft handling and a diplomatic approach to achieve a workable compromise or final resolution.

AdobeStock_292580187-e1576014509781-300x183A partnership is like a marriage. It takes effective communication to meet mutual goals. You can avoid many partnership disputes by creating a clear operating agreement before the partnership starts doing business. The experienced San Jose business attorneys at Structure Law Group can help you avoid unnecessary partnership disputes. By executing a clear, binding, and specific partnership agreement, you can save time and expense that ultimately hurts your business. Call (408) 441-7500 to schedule a consultation with one of our skilled San Jose business lawyers. We have helped many Northern California businesses create effective operating agreements.

How to Create an Effective Operating Agreement

There are several important steps to follow in order to create an agreement that will effectively resolve disputes in future business transactions:

Fotolia_189107114_Subscription_Monthly_M-300x200Perhaps more so than any other kind of business structure, a partnership is heavily reliant upon the personal relationships among the partners. If those relationships are good, the partnership has a much better chance to function smoothly. If not, the personal nature of partnerships generally means that rocky personal relationships will lead to a rocky business relationship. All too often, partners join up based on prior personal relationships that were good, only to find they did not consider business philosophies before forming the partnership. Business differences can lead to personal differences, making it that much more unlikely that the partnership’s problems can be worked out.

Start Early to Avoid Partnership Disputes

Partnerships often are formed by people working in the same industry or friends who develop an idea together. They are common in the practice of law, as well as in a number of different small businesses. Partnerships are frequently a few individuals joining together to start a business. There are steps they should take to minimize the possibility of disputes. These steps include:

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