A partnership is a business that has two or more owners and is not registered as a corporation or LLC. It’s the least expensive way to establish a business operated by two or more people—it can be formed with little more than a handshake.
Because partnerships are the only business structures that can be formed via oral agreement, there is an increased chance for misunderstandings and possible partnership disputes.
Any relationship can experience arguments, and business relationships certainly are no exception. Once an argument leads to a dispute, attorneys may need to get involved. Partnership disputes can happen for any number of reasons, most typically the following:
Depending on the state, there are laws governing partnerships, usually called “The Uniform Partnership Act.” These laws establish some basic legal rules regarding partnerships. However, the best way to avoid a partnership dispute is to create a written partnership agreement at the start of the partnership. This way you can tailor your partnership agreement more closely to you, your partner(s), and your business.
If a dispute cannot be resolved via a written agreement, you can look into alternative dispute resolution, which attempts to keep litigation out of the picture. Our partnership dispute lawyers are seasoned mediators and arbitrators, and work with our clients to protect their rights and livelihoods. If the matter ends up having to go to litigation, we will fight for you in court.