There are many different businesses in Michigan. Some are very large, international corporations with thousands of employees and many shareholders. Others are operated by one person and in between those two extremes there are businesses of many different sizes. Based on the type of business and the size of the business, these various businesses will be organized in different ways.
They may be incorporated as a corporation, they could be organized as limited liability companies (LLC), partnerships, sole proprietorships and other ways. What businesses choose depends on the type of business it is and the size of the business. If the company is a smaller, professional service-based company, one common business organization is a partnership. This can be used for other types of businesses as well but is commonly used for those types of businesses.
Common partnership disputes
Partnerships require good working relationships between the partners as they share in many aspects of the business including the most important factor, which is the profits and losses. Like many relationships, partners often have disputes over various aspects of the business. Some common disputes are:
- Monetary disputes – These arise when one partner may handle more the financial aspects of the business and may embezzle money from the partnership. One partner may also believe they deserve more money than the other.
- Operational Disputes – These types of disputes involve disagreements on how to operate the business or which direction the business should take.
- Intellectual Property – This arises is the business developed intellectual property and one partner believes that it should be their property alone.
When partners in a partnership get into disputes, some may be resolved through negotiation or other methods. However, disputes could also result in litigation and dissolving the partnership. This usually is not something partners want to do and it is important that partners have well written agreements to prevent some of the disputes. Experienced attorneys understand the types of disputes that arise and may be able to help prevent them or help resolve them after they start.