If you find yourself in a disagreement with a business partner and need help coming up with a resolution, Shinners & Cook can help.
There are many reasons why business partners may wish to part ways, whether it be for financial reasons or personality differences which cannot be resolved. Most of the time, however, the last thing anyone wants is to dissolution of the business entity.
If you are experiencing difficulties with your business partner, then it might be time to part ways. A business breakup typically refers to a severance of the relationship between co-owners. While separating can result in your business being dissolved, it’s typically in no one’s interest to kill the goose laying the golden eggs. There are a lot of options and strategies which do not include dissolving the company.
The first step in a business breakup usually includes looking at the initial agreements signed at the business’s formation. Whenever people are in business together, it is imperative to have agreements outlining how issues will be dealt with such as who has the authority to make certain decisions, how losses and profits are to be allocated, management structure, and much more.
Notably, many corporate agreements have terms relating to what happens if an owner wishes to exit the business, becomes incapacitated, or dies. Once you have decided to conclude the business relationship, the next step is to contact an experienced attorney.
While you can always try to come to an agreement with your partner on your own, it is still beneficial to hire a professional to assist you. Even with upfront costs, it will often save you money and headaches in the long run. An experienced business attorney can ensure that you are not being taken advantage of and that all aspects of the business breakup remain legal and valid.
Running a business can be incredibly stressful. It is not uncommon for disagreements among owners. When this occurs, it’s always best to try to work it out without resorting to costly litigation. Unfortunately, that is not always possible. If you disagree with a business partner over core functions of the business, and you cannot seem to resolve the issue on your own, then it is a good idea to consult with an experienced lawyer as soon as possible. A lawyer familiar with business breakup cases can assist you in coming to an agreement with your business partners.
It is also wise to hire a business attorney if a partner is leaving the business. A seasoned business lawyer can assist in determining a fair exit strategy for those leaving and for those staying with the business.
Business separation attorneys handle all types of issues related to dissolving a business or separating from a business partner. Specifically, most business separation lawyers can assist you in the following ways:
All business breakups are different, so exactly what they entail depends on the facts at hand. However, business breakups typically involve:
A thorough review of the operational documents for the company,
A review of any stakeholder agreements,
A determination on the kind of assets and liabilities the business has accrued, and
Developing exit strategies that satisfy all parties
Separating will often include looking through tax and accounting records along with other analytical steps to determine the best path.
While business arrangements can be mutually beneficial, they are often complicated because they evolve naturally over time. Your business partner’s vision for the future of your company may change as the business grows, and sometimes, the relationship just is not meant to last forever. Shinners & Cook is here to help. Our experienced business attorneys know how to handle business disputes and will do everything in our power to ensure a positive outcome for you and your future business prospects. If you have questions about business breakup laws in Michigan or are seeking a business litigation lawyer, contact Shinners & Cook today.