Building a company with a partner has the potential to be extremely advantageous: partnerships allow for various advantages and are especially popular among startups and firms offering professional services. When you start a company with a partner or partners, the furthest thing from your mind is that you might wind up in an argument concerning company ownership. Sadly, these sorts of conflicts pop up fairly consistently and are capable of having a substantial effect on the wellbeing of your company as well as your profit margins.
Business conflicts can occur in any set of circumstances. Listed below are a few of the more typical situations:
- A person might try to exert authority that she or he does not actually possess
- A business partner might violate a fiduciary obligation or contractual responsibility
- Accusations of inappropriate behavior like embezzlement or fraud might come up
- A business partner participates in self-serving behavior at the expense of the company
Of course, these disputes can come about in additional ways as well. Luckily, an experienced attorney can help you dodge and/or circumvent and solve these matters in such a way that guarantees that your best interests are well-guarded.
Speaking With an Attorney in the Early Stages Will Help Avoid Conflicts
The optimal plan of action is to bypass company ownership arguments altogether. While you are not able to magically foresee the behavior of other people, solid legal preparation will help you to reduce both the odds that an argument will take place as well as the possible backlash that would result from a fight between partners.
Consequently, it is extremely prudent for established business people as well as entrepreneurs who will be starting new ownership contracts to consult with an attorney in the beginning steps of any investment. The right attorney will be able to help negotiate terms and draw up executive agreements that explicitly describe each person’s purpose, power, obligations, and also clarify the parameters of conflict resolution.
If a Conflict Has Already Begun, Legal Representation is Crucial
Should a disagreement between you and a partner of your company present itself, it is necessary that you consult with a business attorney as soon as possible, even if you sincerely do not think that the matter will make it to court. Hiring an attorney usually helps to sidestep the need to initiate litigation, which is usually expensive, stressful and wildly intrusive.
The right attorney will make sure that you fully comprehend the responsibilities and rights that both you and your business partner have. Moreover, if your business dispute does go to trial, having an experienced attorney on your side will guarantee that your legal freedoms are safeguarded and that your claim is settled in your favor as much as possible.
Business ownership disputes are notoriously complex, costly, and if you can avoid them you absolutely should. Luckily, careful preparation with the guidance of a Los Angeles business attorney from Leiva Law Firm can help sidestep these sorts of arguments. If you are already embroiled in a dispute with your business partner, you should employ the legal services of a business attorney right away. To schedule a consultation with one of our reputable Los Angeles area business attorneys, call our offices today at 818-703-1777.