Stuck in a Partnership Dispute? Here are the Top Four Mistakes You Should Avoid
A partnership is one of the most common types of business structures. Forming one can be an effective way for a business to grow and prosper. Of course, business partnerships are ultimately relationships between people. Similar to any other type of relationship, disputes happen.
If you are in a disagreement with a business partner, it is crucial that you take the proper steps to protect your rights, your business, and your personal interests. In this article, our top-rated Miami, FL partnership dispute lawyers highlight four mistakes that business partners should avoid when dealing with internal disagreements.
Do Not Make These Common Partnership Mistakes
- Allowing Problems to Linger
In any partnership — from a marriage to a business — a relatively small issue has the potential to become a very serious problem if it is allowed to persist. When issues within a partnership arise, it is usually a good idea to take action. Even a seemingly simple step such as having an informal meeting to address the problem can be incredibly valuable in warding off major disputes.
- Closing the Lines of Communication
People communicate in different ways. Some want constant updates, while others are relatively quiet. Regardless of exactly how the communication occurs, an effective business relationship requires an open line of communication. When business partners are no longer on the same page, serious issues can arise. In some cases, this could eventually lead to the dissolution of the business. It is important that you work to craft strong and positive relationships with your business partners.
- Losing Sight of the Big Picture
When dealing with a partnership dispute, it is always a good practice to take a quick step back and to take a careful look at the bigger picture. How important is the issue that is being discussed? Does it really matter? In some cases, it may actually make sense to give a little ground on an issue that, although you may feel passionately about it, is ultimately not nearly as important as the long-term viability of the business relationship.
- Failing to Protect Your Personal Business Interests
Finally, as important as it is to try to defuse disagreements, work towards solutions, and protect the business, you also need to be ready to protect your legal rights and your personal financial interests. A partnership is a pass-through entity. You should not let a dispute imperil your rights. At the point when a partnership dispute appears to be intractable, it is time to reach out for professional guidance. An experienced Florida partnership disputes attorney can assess your situation and help you determine the best way to achieve your objectives.
Are You Involved in a Partnership Dispute in South Florida?
We are here to help. At Pike & Lustig, LLP, our Florida business attorneys have extensive experience handling partnership disputes. To arrange an initial consultation with our partnership dispute lawyers, please contact us today. With offices in Miami and West Palm Beach, we serve clients throughout the region.
Resource:
law.cornell.edu/wex/pass-through_taxation
https://www.turnpikelaw.com/what-is-a-limited-liability-partnership-llp/
