Unfortunately, many business partnerships, limited liability companies and closely held companies can be impacted by conflict on a regular basis. When the conflict escalates to a particular level, you may ultimately decide to dissolve the business. Without a well-drafted agreement for the partnership or company you may struggle to figure out your next steps. This is why it is recommended that you always use a written partnership agreement, operating agreement or corporate bylaws before entering into a business venture with another individual. Here are some additional tips for handling conflict when your business is being dissolved.
What About Disputes When We Have a Partnership Agreement Already?
Even when you have a written agreement, having a conflict with your business partner can present serious challenges. Your first step should be to consider whether or not you can resolve the conflict on your own. There are many difficult issues that can emerge in partnerships and put a great deal of stress on the relationship.
Do I Really Need an Attorney to Fix This?
If you are able to work through the problems on your own, you may be able to chart a better course for the future of the business. That being said, there are certain situations where you may need to bring in an Arizona commercial litigation attorney to help you. At the conclusion of your best efforts to resolve things, if you are still facing challenges, the most likely outcome is that you can both sell the company to a third party or to have one partner buy out the other.
In circumstances like this, you should consult with an Arizona business attorney to help aid in the dissolution of the business. There is simply too much at stake to use an attorney who is not experienced in this field or rely on someone else who is not an expert in business law and commercial litigation.
It is advisable that the individuals involved obtain an independent evaluation about the value of the business before moving forward. Having an attorney to help you during this difficult time can make it much easier for you, because you will understand what to expect and have accurate information in order to make your own decisions. Consulting with a business attorney when you have made your best effort to resolve a partnership dispute on your own may be your last line of defense, but it can also help you move on from this unfortunate situation. A business partner dispute can put a lot of strain on the relationship and the company, so you should act sooner rather than later.
This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice regarding Handling Conflict When Your Business is Being Dissolved, or any other commercial litigation matters, please feel free to contact Joel E. Sannes at 480.461.5307, or log on to udallshumway.com, or contact an attorney in your area. Udall Shumway PLC is located in Mesa, Arizona and is a full service law firm. We assist Individuals, families, businesses, schools and municipalities in Mesa and the Phoenix/East Valley.