Colorado business owners who are considering taking on partners have a lot of things to consider before taking such a big step. After all, partner-related employment disputes are known to arise. Do the benefits of taking on a partner outweigh the potential cons of having to deal with any legal issues that may occur.
Clearly this is a personal decision. However, before just saying “no, it is not worth the hassle,” know that there are some steps that can be taken to avoid partnership disputes. What are they, and are they really all that effective?
Before really getting down to business, each partner may want to consider signing an operating agreement. An operating agreement covers the rules and regulations that govern a business. With such an agreement, each partner will know exactly what his or her role is in the company and what the overall vision for the company is.
Another contract that may be good to have is a values agreement. It is simply a declaration of commitment. Partners can have very different mentalities, but that does not mean that they cannot work together successfully. By committing to adhere to the same values, they can work well together and create a thriving business.
Finally, when working out partnership agreements, being fair is key. Both sides will want to feel that what they bring to the table is valued. If one individual feels cheated, the odds that a partnership dispute will arise are much greater.
When working to put together a partnership, an experienced attorney can help both parties create the contracts necessary to help avoid partner-related employment disputes down the line. Should any issues happen to arise, an employment law attorney can help resolve the matter by utilizing alternative dispute resolution techniques. If necessary, litigation in a Colorado civil court is also an option.
Source: Forbes, “How To Avoid A Partnership Dispute“, Shane Robinson, Accessed on Aug. 24, 2017