General partnerships are relatively simple business entities, as they require no documentation to be filed with the California Secretary of State. However, this does not mean that partnerships should forego any type of formal business documents, as doing so can lead to disputes and conflicts between owners that are difficult to resolve. Having an experienced business lawyer in Walnut Creek draft a partnership agreement can help to limit the problems you face in the future.
Partnership agreements set the guidelines and expectations of joint ownership of the company. The agreement should carefully spell out each partner’s responsibilities, obligations, and rights. This includes management duties, financial contributions, division of profits, and more.
When two partners have a disagreement – which is bound to happen at some point – they can refer to the partnership agreement to help resolve the matter. Even if the answer to the dispute is not within the agreement, the agreement should at least state how partners are expected to resolve disputes. This can include informal negotiation, mediation, or arbitration before the matter would ever make it to court.
If you do not have a partnership agreement in place, there is no road map for how to resolve partner disputes. If a conflict arises, you should discuss the issue with an experienced business litigation attorney right away. The right lawyer can assist you in negotiating a resolution out-of-court whenever possible to save your company’s resources. We can also help you put a partnership agreement in place to avoid future problems.
At the Yudien Law Firm, P.C., we represent business owners in all types of disputes, working for the most efficient resolution. Call 925.472.0600 or contact us online if you have concerns about a business-related dispute today.