Partnership Disputes Attorney In Encino, CA
Finding a reputable attorney to represent you in a partnership situation may be one of the most valuable business decisions you’ll ever make. An Encino partnership dispute attorney can assist a new company by filing the necessary papers with the government, creating the operational or partnership agreement, and defining expectations for each party before problems develop. Although most squabbles may be resolved without incident, there is always the risk that even the most cordial partners will not be able to resolve their differences. Having an experienced business lawyer on your side for partnership disputes can prove to be a tremendous help.
What Is A Partnership?
There is no requirement for a formal partnership agreement in the state of California. In fact, all that is required to establish a partnership is two or more people who are operating a business for profit and sharing in the profits made from it. There’s no need for a person to start a partnership; two separate business entities may be considered individuals who create a general partnership. When a general partnership is sued, the individual owners may be held personally liable for any judgment. When a general partnership enters into a loan agreement, the individual owners may be held personally responsible for the debts of the general partnership.
There are a few other sorts of partnerships that need a formal agreement. Limited Liability Partnerships (LLPs) and Limited Liability Limited Partnerships (LLLPs) require formal agreements to be established. These types of partnerships restrict the liability of each partner for the partnership’s obligations. Both LPs and LLCs require a formal designation from the state, as well as a filing with the Secretary of State in the partnership’s home state. In addition, there are designations such as “limited partners” and “general partners” in LLLPs that might influence a partner’s liability for partnership liabilities.
Whether you’re a member of a partnership or merely face personal responsibility for the firm’s debts, figuring out your status is tough. It would be wise to contact an experienced Encino partnership dispute attorney to clear up any concerns you may have about your partnership status.
Common Causes of Partnership Disputes In California
Many partnerships are complicated; as a result, proper planning and preparation for potential disputes are required. Despite taking all of these measures, many successful relationships ultimately collapse; the Beatles are certainly the most notorious illustration. Some of the more common causes of partnership disputes in California include the following:
Breach Of Fiduciary Duty
Financial disputes between partners may have a significant negative impact on a firm. Partners have a fiduciary duty to the company, stakeholders, and each other to manage assets ethically and in the interest of the partnership. Misappropriating corporate money, misusing business resources for personal gain, or failing to handle obligations are all acts that might be considered breaches of fiduciary responsibility. Because these financial rights and responsibilities of a company are so important in the operation of the business, a breach of fiduciary duty might result in partnership squabbles, with the conclusion of the partnership.
Breach Of Contract
For example, if a business partner breaches his or her end of the business partnership agreement, he or she may be held liable for breach of contract. Having an enforceable partnership agreement prepared by an Encino partnership disputes lawyer who understands breach of contract litigation can be quite helpful in this case.
Intellectual Property Disputes
Another cause for business partnership disputes is determining whether the company’s intellectual property is being used or owned by an individual. Intellectual property might include anything from a logo to a concept, as well as training materials and even goods sold in a store.
If you’re planning to utilize your intellectual property in your business, it’s critical to document ownership and usage rights from the beginning. If there is a dispute over the IP, the property owner has the right to withdraw permission for use. Creating parameters for when the intellectual property may be utilized can help prevent problems in the future.
If there isn’t a clear chain of command, serious concerns might not be addressed due to the fact that too many partners are dealing with the identical problem or because no one is addressing it. Even if you have such a document, problems can occur when partners do not follow the chart of authority correctly. Nonetheless, establishing a clear chain of command early on to avoid confusion and uncertainty about partnership responsibilities is the greatest way to prevent partnership authority disputes.
A business may receive assistance from various sources, including its partners. However, comparing one sort of contribution to another might be difficult. If one partner feels he or she is giving more and that the workload isn’t being fairly spread out among the pair, problems can arise in the partnership. Setting forth clear expectations for partner contributions in the partnership agreement may assist avoid workload issues.
Company Vision Disputes
Each partner’s values, goals, and objectives must be in sync with those of the company and other partners. If one partner views the business as a means to a modest livelihood before selling it to a larger firm, this may be at variance with a partner who wants to develop the business and ultimately go public. Partners should establish an early vision for the corporation to avoid quarrels about the corporate mission.
Disagreements will emerge between partners, but poor long-term business partners may not be those who are particularly prone to conflict. Differences in personalities that were previously seen as advantageous might develop into hostile and harmful over time. When a married couple divorces, this adds another level of intricacy to partnership conflicts that can only be addressed by consulting a family lawyer.
Avoiding and Resolving Partnership Disputes
The greatest method to prevent tie-ups is to engage a competent partnership disputes attorney in Encino before establishing a company relationship. A business attorney can assist you in drafting documents that define each partner’s responsibilities and expectations, which can help you avoid costly litigation in the future if a partnership disagreement arises.
Contact a lawyer as soon as possible if a partnership issue has already arisen. A knowledgeable business law attorney can analyze partnership papers to suggest the best course of action for your needs while also saving you time and money.
Contact An Encino Partnership Dispute Attorney Today
At Haber Law Firm, APC, we can provide help with a number of business law services and has years of experience. We can assist you in negotiating a settlement, obtaining an injunction to safeguard your company’s interests or the strategic function that litigation may play in safeguarding your rights in any controversy. Our Encino partnership disputes attorney at Haber Law Firm, APC understands the complex nature of commercial partnership conflicts. Our legal team can help you address these issues while still keeping important relationships intact. For a free consultation to discuss your firm’s legal needs, contact our team now.