When two or more people go into business together, they have formed what is called a “partnership”. Keep in mind that different types of businesses and different companies define the roles and limitations of partnership differently. Laws regarding partnerships may also vary from state to state. Before you enter into a joint venture make sure you and your partners have a clear agreement about what rights and responsibilities you have to each other and to the business. This agreement should always be in writing in order to avoid any misunderstandings about these responsibilities. Even with a written partnership agreement, disputes often occur. When this happens, each partner should hire legal representation to protect their interests. If you and your business partner are in the middle of a dispute you do not see being able to resolve on your own, contact a Miami partnership dispute attorney who can tell you what steps you should take next.
If an informal resolution cannot be reached, litigation or mediation may become necessary. While going to court might not be your ideal situation, the consequences of not standing up for your rights can be far worse. For example, if you are a minority partner in a business. Your partners, who hold the largest portion of the company, refuse your access to the company’s financial reports. How do you know if they are being honest with you about your share of the profits? Maybe you do see the reports, but you see a lack of profits while the majority partners are receiving a huge salary. The cost of not pursuing this issue could result in tens of thousands of dollars in lost profits to you over the years of the partnership.
The easiest way is to avoid partnership problems to begin with. There are a few steps you can take to keep yourself from running into these issues. First make sure you all have the same vision for the company. As the company progresses, make sure you meet with your partners so that everyone is kept in the loop about what is going on. Also, make sure the partnership agreement outlines everything! Absolutely everything you can think of. Consider hiring a Miami commercial litigation lawyer who can help you and your partners draw up a written agreement. Also, keep it updated. If you change an integral part of the company, review your original agreement. Make sure each party understands their role in the business, what happens if they do not meet these responsibilities, and what happens if a partner wants out of the company. Keep in mind that while a fifty-fifty split might seem very fair when you start a business, it also makes settling disagreements very difficult.
In reality, no matter how hard you try to avoid disputes and solve them in house, sometimes it is necessary to involve others. If you feel that you are not being treated fairly in your business partnership, contact a Miami commercial litigation law firm who can make sure your interests and investments are protected.