A business law lawyer in Texas can help clients throughout Houston, Galveston Island, Montrose and surrounding areas to take steps to try to avoid partnership disputes. Many people who start a new business will begin operating their company with friends or colleagues. Having one or more partners allows you to share the risk, divide the labor, and increase the chances of a successful endeavor. However, when you go into business with others, you also take a chance that disagreements could develop down the line, which often have an adverse impact on your organization's future.
There are ways that you can maximize the chances your partnership will be a success and reduce the potential problems that could develop as your business grows and changes. Creating the right contracts and paperwork when you are first getting started is essential to maximize the chances of success and protect your (and your company's) financial interests over the long term.
How to Avoid Partnership Disputes
The best way to avoid partnership disputes is to head them off before they happen. When you first start an organization with one or more partners, you need to create a partnership agreement, and you need to create employment contracts delineating what role each of the partners should play. When work is divided among different partners, and each has a job to do within their own area of expertise, there should be limited situations where two partners could butt heads on a particular issue.
The employment agreements will make clear to all partners involved what their own jobs are, and the partnership agreement will specify how the co-owners can work together and separately to make the business strong. A solid business plan is also a good document to create to map out where you want your company to go, so there is less chance of future disagreements about the direction of the enterprise.
Your partnership agreement should also specify what will happen if a conflict does arise. Even when everyone has their own roles to play, there may still be situations in which a difference of opinion arises. When this happens, you want to have a plan in place for how disagreements should be resolved. You can specify a process for mediating the issue and detail how the final decision will be made when no compromise can be reached.
You should also create a buy-sell agreement that dictates what happens if any partner decides to leave, becomes disabled, passes away, or divorces. This can help ensure you will not find yourself working with someone you don't like or having a disagreement over how one partner should be compensated for leaving the organization.
Creating these documents requires careful negotiation and an understanding of how to draft a comprehensive legal agreement that will protect everyone's interests. An experienced attorney can provide invaluable help in creating effective and enforceable partnership agreements that help you move forward with running a successful company with your co-owners.
Contact a business law attorney for help starting your company. Call Brewer & Prichard P.C. today at 800-445-8710 or visit https://www.bplaw.com to schedule a consultation. Serving Texas, the greater Houston metropolitan area, Galveston Island, Montrose and surrounding areas.