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Commercial Litigation Attorneys
Miami, Florida

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There are many disputes that arise in partnerships

 

There are many different businesses in Florida. There are also different ways that these businesses can form. Some businesses form as S-corporations and others C-corporations. They could also form as a limited liability company, a sole proprietorship, a partnership and others. The type of business formation chooses depends on a number of factors, but it is important that the company clearly states the roles of the people in leadership to try and limit potential disputes that may arise in the future.

 

There are many different types of disputes that can arise depending on the type of business. However, some are unique to certain business formations. For instance partnerships may experience different types of disputes than corporations. Some of the common disputes that arise in partnerships are financial disputes in terms of how profits and losses are being split or one partner is diverting assets. Another is disputes over who has authority over which areas of the business and when one partner may overstep their authority. Partnerships may also experience disputes over workload issues between the partners. One partner may also be competing with the business or misappropriating business opportunities.

These disputes may be able to be resolved within the partnership, but this is not always the situation. If the dispute is not resolved in that manner the dispute may need to be resolved through business litigation. This generally involves partners filing a lawsuit against the others for income they believe they deserve or other issues that may arise. Once these arise many times how they are resolved are determined by the formation documents and other documents detailing how the partnership will be run.

There are many partnerships in Florida and they can be run differently depending on how the company will be run. However, the documents that state how the partnership will be run are very important because often times those documents will be used to resolve future disputes. The disputes can be very complicated though and poorly drafted formation documents can add to the complication. Experienced attorneys understand these issues though and may be able to guide one through them.

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