Managing Partnership Disputes

When starting a business, sometimes people choose to start with a partner; this is just one of the many reasons business owners should employ a Business Litigation Lawyer Washington, DC, companies recommend to avoid problems later on. Business litigation can be a complex matter that many business owners dread enduring because legal problems can be costly and impact a business’s productivity and bottom lines. Partnerships are common in business, and owners can make various partnership agreements. Common types of partnerships include:

  • General Partnerships
  • Limited Liability Partnerships
  • Limited Partnerships

However, sometimes, business partners may want to part ways, and there are several reasons for this. While a partnership agreement can help to outline what happens when there is discord, it can also provide a roadmap for how to dissolve a partnership when one party wants out. Partnership disagreements can be complex and challenging to navigate. Our firm from Eric Siegel Law, can play an integral role in providing counsel during the challenges that often come with partnership issues. 

What is Business Litigation?

Business litigation involves legal matters that can impact businesses of all kinds. Large and small companies are likely to experience legal issues during their operations. When a business is formed, and throughout its lifetime, it will face several critical decisions, many of which could have a legal impact if not managed carefully. A Washington, DC business litigation lawyer will play an important role in counseling business owners in several legal matters, including:

  • Business Formation
  • Employment Issues
  • Partnership Agreements
  • Contracts
  • Civil Claims
  • Intellectual Property Matters
  • +More

Business ownership involves far more than an innovative idea; business owners will pour their capital, time, and passion into owning a business. To ensure success, it’s imperative to set the company up for success and anticipate potential legal issues so that they are managed appropriately should they arise. 

Common Reasons Partnerships Dissolve

Dissolving a partnership is not something to be taken lightly. Hopefully, those invested in the business will have a solid partnership agreement that dictates the terms for dissolving the partnership. While this can ensure a smooth leadership transition, the process can become rather complex when there is no agreement. Despite this, when disagreements resulted from the dissolution, problems were often apparent for some time, and the end may not have been a surprise for those involved. Disagreements and partnership issues can deeply damage a business, and it’s essential to take proper action to protect the company. Common reasons partners may choose to no longer be in business together can include:

  • Financial Challenges
  • Disagreements Over Profit Distribution
  • Unequal job distribution
  • Breach of Contract
  • Unethical behavior
  • Retirement
  • One party wants to leave the business
  • Disagreement over business operations

Dissolving a partnership can be a contentious and litigious process. Still, when a good partnership agreement is in place, it may be possible to end the collaboration with minimal conflict, as owners will have a clear roadmap for the steps forward. 

In the absence of an agreement, partners ending their business relationship will require guidance from a Washington, DC business litigation lawyer to help guide them to resolution. Our team at Eric Siegel Law can help guide business owners in ending their partnership while also helping to carry out the wishes of our clients so that their businesses can remain successful for years to come.