How to Avoid Business Disputes

Family and closely held businesses can often end in litigation or disputes. These disputes are avoidable with careful planning and third-party legal assistance.

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If you are entering into a business relationship, it is important to protect the business and your interest at the outset. It’s also never too late for a business owner to meet with an attorney to reevaluate business documents and organization to plan for the future.

If you want to protect your business and your relationships with business partners, communication and clarity are essential.

First, all roles must be clearly defined. Everyone involved should know exactly what titles they have and what authority they will have within the business. This can be done through bylaws, operating agreements, management agreements and other business documentation.

If these documents are already drafted but lack clarity or don’t reflect the actual business arrangements, they should be updated and amended to reflect the current wishes and practices of the business. We work with our clients to ensure these documents are updated without causing turmoil in the business.

We also advise our business owners as to whether or not they should have employment agreements, and what the employment agreement terms should include.

Next, we advise that even in closely held businesses, corporate formalities should be followed.

Clear communication is essential not only in business documents, but in all business operations. Minority owners should be informed of all affairs of the company.

We help our clients ensure that good practices are put into place to avoid disputes and costly litigation in regards to their businesses.

It is essential to put practices in place that work for your business and protect the business and owners alike.

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Do you need help with your policies and procedures or negotiating contracts with third-party vendors?  We can help. To contact us about your legal needs:  CLICK HERE.

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