Partnerships are one of the most common business structures in the U.S., and entrepreneurs in New York are well aware of the benefits of partnerships. Often, working with someone whose skills complement one’s own is a wonderful way to get a business off the ground. Partnerships can be fertile ground for an exchange of ideas, and that can make the business sharper. However, many common problems arise in partnerships.
Common partnership disputes
Disputes will always arise in a partnership. Some of these are mild and constructive. Others point to real problems at the heart of the business. Some of the most troubling disputes among business partners are about finances. In fact, many partnerships dissolve because one party is stealing money from the company. This points to one problem inherent in many partnerships: lack of communication.
In some partnerships, one person has full control of the finances, and the other partner has little to no information about what’s happening on the money side of the business. The other partner may have total control over operations. This is not an ideal way to set a business up. It’s important to walk in with a plan that will include checks and balances on officers’ power. That plan should not just include information for forming the business. It should also include guidelines for dissolving the partnership too.
It’s always prudent to run a background check on someone before going into business with him or her. This can turn up evidence of issues, like embezzlement, in the past. If serious problems crop up in the partnership, it’s a good idea to contact a lawyer. Someone with experience in business litigation may be able to provide advice about the best and quickest way to dissolve the partnership.