Breaking Up with Your Business Partner

The old adage is that breaking up is hard to do. It is even more difficult when you are dealing with a business partner. You must protect your legal interests at a time when emotions may be raw while preserving the ability of your company to keep operating.

Regardless of the corporate form of your business, a business breakup will be difficult. You will likely have some form of operating or partnership agreement that governs your relationship with your business partner. This document will control the dissolution process. If you have a partnership, a breakup may mean the end of your business arrangement.

If you have an LLC or other type of corporation, you would consult the operating agreement for how the breakup is handled. There may be terms that dictate when the business can be dissolved. You may need to buy the other business partner out of their share of the company in order to keep the business going. Otherwise, a court could order the breakup of the company, with assets going to pay each partner.

You should always consult with an attorney if you are having tensions with a business partner. They may help you resolve the matter before it reaches the point of a breakup. If the relationship cannot be mended, an attorney can help preserve your own rights under your contractual agreement. They can work to protect both the company assets and your financial rights. Your lawyer can aid you in acting decisively when necessary while still leaving your options open.

Contact a Boca Raton Business Attorney

The attorneys at Rubino Findley can help you through some of the most difficult business situations in a practical and commonsense way. To speak with an attorney, you can send us a message online or call us today at 561.781.8250.