Business disputes are a near inevitability when you are running a company. However, the possibility you may dread the most is that the partner with whom you began your venture might try to push you out of the business.
If you anticipate that your business partner may be trying to push you out, it is important to know what protections are in place for your benefit.
Refer to your operating agreement
Certain states require an operational agreement to be in place at the time of registering. This document outlines several important details, including the duties and terms of ownership for each partner. While the state of Kentucky does not require an operational agreement for new businesses, a well-written agreement serves to protect individuals within your company even if a matter comes before a business court.
Refer to state law
State regulations may protect your rights as a business owner in the absence of an existing operational agreement within your partnership. While you may prefer to avoid having the circumstances of your dispute written to public record, court-administered mediation or arbitration can be a solution for maintaining your business interests in accordance with state law.
There are many potential risks when going into business with another entrepreneur, even when you think you know the person very well. You can mitigate such risks by having a business law attorney at your side every step of the way. It is important to have ready counsel for drafting ironclad business agreements and for settling disputes efficiently.