Structure Law Group, LLP offers counsel to Austin business partners and their companies. With locations in Los Angeles, Silicon Valley, and Austin we provide multi-state companies operating in the tech sector with cost-effective representation.
Business partnerships start off with unique challenges. In the beginning, partners may have similar goals for their company. Over time, those goals may diverge resulting in two or more differing visions for the same company. Power struggles can emerge, with accusations made, and lawsuits resulting from the fallout. The Austin business partnership attorneys at Structure Law Group, LLP have decades of experience drafting partnership agreements that avoid many of the costly partnership agreement. In this article, we’ll discuss how our Austin business and corporate attorneys can protect your business from potential threats coming from within.Understanding Partnership Disputes in Austin, TX
Many folks just starting out with friends from college make the understandable mistake of forming their partnership with the belief their currently amicable relationship and shared goals will persist for as long as the partnership remains intact, this is not always the case. Unfortunately, it is inevitable that someone has ideas about which direction the company should go and not everyone shares that same vision. While this is inevitable, it does not need to spell major disaster for your company. Embattled partners can tear a company apart.
Serious problems for your company are generally avoidable with a strong partnership agreement. When all of the procedures for handling disputes are clearly delineated to all parties, partners are prevented from sabotaging the company’s interests, breaching their contract, or self-dealing. A meticulously crafted partnership agreement can help your Austin company avoid the protracted costs of emotional litigation.Starting a Business in Austin, TX
While disputes are a large part of a business partner’s legal concerns, the Austin business partnership attorneys don’t just prepare for potential disputes emerging between vested parties, we also help businesses get on their feet by navigating complex local, state, and federal laws. This includes helping you file any necessary paperwork with the government and registering your intellectual property. Most importantly, we help you draft a solid partnership agreement that provides guidance for managing partnership disputes.Partnership Contract Disputes in Austin, TX
Once your partnership agreement is drafted, it specifies the partnership duties of each partner and their obligations under the terms of the partnership. Further, it defines how and why partnership assets can be used as collateral for loans or other matters. The contract will further specify issues such as nondisclosure agreements, non-compete clauses, and other matters. In some cases, a business may need to sue a partner for breach of fiduciary duty. Structure Law Group, LLP will advocate on behalf of your partnership against self-dealing partners.Business Partnership Asset Abuse Lawyers in Austin, TX
Money invested in your business is not the property of the partners, but the property of the partnership. A solid partnership agreement can avoid costly liability related to the bad faith actions of a partner, and help you recoup costs associated with their embezzlement or improper unauthorized use.Business Partner Misconduct Attorneys in Austin, TX
While the employment discrimination laws of Texas are not as far-reaching as California’s, Austin has its own civil rights code that extends federal and state protections. Further, poor conduct, discrimination, sexual harassment, and other matters are punished by the public far more frequently than the courts. If your partner commits a crime or files for bankruptcy, it could hurt your partnership.
In these cases, a clearly-defined code of conduct can eliminate the reputational and financial damage caused by an unsympathetic or financially irresponsible partner. A clearly defined partnership agreement would give you the power to remove the partner from the company, if necessary.Breach of Fiduciary Duty in Business Partnerships
Fiduciary duties are the lynchpin of our legal and economic system. A fiduciary is someone who is obligated to act in the best interests of someone else. As an example, a lawyer is a fiduciary of their clients. Similarly, business partners are fiduciaries of the partnership. Their duty is to act in the best interests of the partnership. Failure to uphold these obligations can void a well-worded partnership agreement or cost you thousands in avoidable litigation.
Fiduciary breaches that may arise in a business partnership include:
- Failure to disclose a conflict of interest
- Exposing trade secrets of violating copyright interests
- Negligent administration of the partnership
- Exposing the partnership to liability
- Investor lawsuits
The Austin business partnership attorneys at Structure Law Group, LLP can help you file causes of action against self-dealing partners who put their own interests ahead of the partnership.How an Austin Attorney Can Help You Manage Partnership Disputes
Partners may have different ideas concerning the evolution of the company or simply disagree on the way the company is run. A clearly-defined partnership agreement avoid many potential partnership disputes because they dictate how these disputes are supposed to be resolved. Without an ironclad partnership agreement, it can be difficult to hold a partner accountable for their conduct because their duties and obligations to the partnership are not clearly defined.
Further, in cases where the partnership is no longer tenable, the partnership agreement will contain clear instructions on how the partnership is dissolved and how assets from the partnership are distributed.
The Austin, TX business partnership attorneys at Structure Law Group, LLP have decades of experience drafting ironclad partnership agreements for new business ventures. These agreements ensure the interests of all parties and the partnership itself.Talk to an Austin Business Partnership Attorney Today
Structure Law Group, LLP works with both established companies and those just starting out. Call our Texas business lawyers today at (512) 881-7500 to discuss the needs of your partnership, if needed, we can help you draft a partnership agreement that avoids much of the stress of operating a business partnership.