As a Business lawyer in Memphis, TN at Patterson Bray has said before, no one should ever enter into a business partnership lightly. Before you and another person make this commitment, you should be certain that your business practices and ideologies are compatible. Unfortunately, it can be very difficult if you discover that your partner is doing things that you consider harmful to your business, it can lead to serious conflict. While it can be an appealing thought to resolve the conflict and return things to how they were before, your top priority should always be to protect yourself legally. If your partner is doing something illegal, distance yourself immediately. If the conflict is not quite that serious, here are some of your best options.
Do You Really Need a Business Lawyer to Start Your Business?
A Business lawyer in Memphis knows that starting a business isn’t an easy venture. Money is probably tight. You have to decide where to best spend your dollars. You might want to save money by not hiring an attorney, which you have the right to do. Many small businesses start out without an attorney. The simpler your business is, the less likely you really need an attorney. What are some situations in which you might save more money by hiring a lawyer to help you start your business?
How Many People Are Involved?
If you are the only owner of your business, you might be able to get away without an attorney. As you add partners, even one, it can be a good idea to create a contract that outlines some basic principles. You want to know what will happen if one of you wants out of the business or dies. How will you distribute proceeds? What are each of you responsible for? Boilerplate legal documents can be a starting place, but don’t always work for every situation.
How Much Paperwork Is Involved?
If you are registering your business as an LLC, partnership or corporation, we can help you with the paperwork and legal documents. Your lawyer can discuss the pros and cons of different legal structures and make sure that your interests are represented. Having an attorney set up articles of incorporation will save you time later when your business takes off.
Taxes, Legal Issues, and More
Small businesses often get themselves into trouble by not laying a good foundation from the start. If you don’t pay taxes on time, it can cost you a lot in penalties and fees from the state or IRS. Having a TN Business lawyer from the start helps you get off the ground without missing details that could come back to bite you. Your attorney may know of legal issues that pertain to your state or industry that require certain requirements in place to open a business.
Technically, you don’t need a lawyer to start a business. But paying one to go over your information before you get into a business can help you save time and money down the road. Just as you wouldn’t try to rebuild your kitchen without professional expertise, you shouldn’t try to build a business without legal advice. Your lawyer might cost a little up front, but if you save money by not having to learn the legal aspects of business, it is worth the investment. Don’t discount the value of an attorney.
Having the ability to share in the responsibilities of a partnership can provide business partners with someone to rely on during the trials and tribulations of owning a business. Sharing in the risk of business ownership with a partner can have a series of advantages. However, in some cases, business partnerships don’t always go as expected. When partners are unable to stay in business with one another, they may choose to end their partnership.
In some cases, this can be resolved amicably. However, in most cases a business lawyer in TN like one from Patterson Bray may play a key role in the dissolution of a business partnership. Here are some tips to consider should you and your business partners decide to part ways:
Tip #1 Review Your Partnership Agreement
In the event you created a partnership agreement, taking the time to review it can help to provide both you and your partner with insight. A partnership agreement can act as a guide to business owners, especially when faced with conflict or disagreement over the business. Once you have made the decision to end your partnership, the agreements you have in place may shed some light into how you and your lawyer should go about dissolving your partnership.
Tip #2 Be Honest with Your Business Partner
Have you tried to communicate with each other regarding the problems? Chances are, if you are ending a business partnership, the likelihood that you and your partner have been struggling to run the business together is high. If you have decided to end the partnership, we stress the importance of at least making attempts to communicate how you are feeling and the decision you have reached.
Tip #3 Attempt to Negotiate with Each Other
Avoiding litigation is usually an attractive option for many business partners. In some cases, partners looking to dissolve their partnership without litigation may be possible. However, it’s important to bear in mind that there can be many complexities to dissolving a partnership. Many of which, you may have not even considered. Accessing a Memphis, TN Business lawyer to provide counsel and assistance with this process can ensure that you cover key details to the dissolution process.
When A Memphis, Tennessee Business Lawyer Becomes a Necessity
Even before negotiations to end a business partnership go south, obtaining counsel may be necessary. Partnership dissolutions are often a complex matter. It’s likely this process may result in hard feelings between partners. Counsel from a Patterson Bray can be especially key to remain focused on the task at hand. A business lawyer can help by putting together a dissolution plan that includes:
In some cases business partners can endure this process together. In other situations, partners may be unable to reach an agreement, making the ability to negotiate terms nearly impossible. Through litigation, the court may make decisions regarding payments and the division of assets. The process of ending a partnership that requires litigation, in some cases may be the only viable option. We can help assist in the complexities surrounding this significant change to your business.
Dissolution of a partnership can be a pivotal decision for a business owner. Regardless of the reasoning behind moving forward, managing the fear of the unknown can be challenging to manage alone. At Patterson Bray, we can work closely with you to protect your interests and manage the legal issues you may be facing.
Business Succession, Planning for the Future
If you are the owner of a business, or have interests in one, we recommend that you not delay in developing a succession plan in the event of the unexpected. Your business succession plan should be an integral part of your business plan regardless of how involved you might be in the day-to-day operations.
A TN Business lawyer in Memphis can help you to consider all possibilities to ensure you’ve covered all of the details. If you would like to speak with a Memphis, Tennessee business lawyer, call Patterson Bray to access the wealth of knowledge they may provide.
Most U.S. businesses are family owned, and up to half of all wage earners in the country are employed by them. Walmart, for example, is the largest family-owned private employer in the U.S. Although very few businesses will ever approach this kind of magnitude, all businesses will be subjected to taxes and other rules – especially when a business is transferred. When you die, retire, or become incapacitated, business succession will likely take place. However, without a plan in place that has been carefully developed by a lawyer, you and your heirs may run into problems.
The Importance of Having A Business Succession Plan
As we may explain to you, a business succession plan enables you to transfer your business to a family member, partner, third party, or to the business itself in an easy and effective way. Your business lawyer will first consider the type of business structure in place; afterwhich, the following aims may be sought:
It is estimated that only 30 percent of family-owned businesses in the U.S. will survive into the second generation. We will tell you that the disharmony of family members, taxes, and other hurdles, can make it difficult to transition a business properly. With a business succession plan in place, it may be possible to mitigate obstacles; giving the business the opportunity to thrive.
The future of your business, your family, and your employees will depend upon your business succession plan. Through meticulous planning with a lawyer, you can ensure a smooth, and successful transition between you and the future of your business.
If you would like to learn more about planning for the future of your business,