Many business owners run their businesses as partnerships. This business entity is similar to a sole proprietorship but has more than one owner who equally owns the business together. While this can be a wonderful way to include diverse skill sets into your business, partnership disagreements can also arise that may threaten the stability of your business as a whole.
We understand the legalities of partnership disputes and have helped many of our clients with their cases. Keep reading for more information on topics to address to avoid potential partner disagreements.
The ownership of your business
According to Forbes.com, the ownership of your business is something you both should address in the beginning to avoid disputes down the road. Specifically, this topic should address what should happen if someone wants to leave the business. While this may not be something that you think you would be discussing as you set up a new business, it is important to consider the effects of partner dissolution beforehand. Additionally, you may want to include a noncompete clause in order to prevent the other person from potentially stealing your ideas and your business.
How to resolve disputes
Again, this may not be a fun topic to discuss while you are just getting started, but disagreements will inevitably happen from time to time. It is important to create a document spelling out how to handle these problems in a legal sense. Mediation and arbitration are two different methods of settling disputes and discussing which avenues to pursue at what time can help set guidelines for what to expect. More information about this topic is available on our webpage.
