A partnership is an arrangement between two or more people who run a business together. In this type of business structure, the two parties will share responsibilities for running the company, including paying debts associated with the business. When two or more people are working together, there are times when creative differences or other types of disputes arise, leading to complications between the two partners.
Partnership disputes can be inconvenient and frustrating, and they may begin to affect how you can run your company. It might be necessary for you to seek a legal resolution to your dispute, or you may have to part ways. Before you make any important decisions that may affect your Louisiana business, you may want to explore all of the options available to you.
What to do next
The differences between you and your partner are starting to affect day-to-day operations, and you are unable to move forward with major steps. What should you do to resolve the dispute? The following steps may be helpful for you:
- Review all documents as your partnership agreement may have terms that outline what will happen in the event of a dispute.
- Work to resolve differences in the early stages before they have a chance to escalate out of control.
- Have a sit-down session with the other partner and take turns actively listening and discussing issues.
- If necessary, seek outside help to mediate discussions or assist with problem-solving efforts.
If it is clear that it will be impossible to continue with the partnership, it is possible to legally dissolve the agreement or pursue litigation to reach a definitive resolution to the issue. If ending the partnership, it may be necessary to buy out the other party or take other legal steps to effectively terminate the agreement and allow both sides to move forward.
A strong foundation
The foundation of any healthy partnership is a carefully drafted legal agreement between the two parties. If you are in a situation where you are unable to resolve the issues you currently have with your partner, you may find it beneficial to learn about your rights and what steps may be necessary to protect your legal and financial interests. It is possible to secure a practical resolution to a partnership dispute that will allow you to secure the future operations of your business.