Los Angeles Partnership Disputes Attorney
Mathew & George have over 40 years of combined experience handling partnership disputes involving Limited Liability Partnerships (LLPs), General Partnerships (GPs), and other common law business partnerships throughout the state of California. When it comes to partnership litigation, the team of Los Angeles employment law attorneys at Mathew & George will provide results-driven commitment to your case and fight for you. Our team serves the Los Angeles area, as well as throughout Southern California.
What Is a Business Partnership?
A business partnership is a legal relationship formed by the agreement between two or more individuals to carry on a business as co-owners. In California, business partnerships can include:
- Limited Liability Companies (LLCs)
- Limited Liability Partnerships (LLPs)
- Limited Partnerships (LPs)
- General Partnerships (GPs)
If you have recently ended a California business partnership and believe that a former colleague violated the terms of the original partnership agreement or otherwise caused you damage, you need to protect your rights as a business owner as well as the profitability and viability of your business by hiring a Los Angeles partnership dispute lawyer.
Sources of California Partnership Disputes
Partnership disputes occur for several reasons. In California, the most common types of disputes between partners are:
- Declining business revenues
- Disagreement over business direction
- Disagreement over profits
- Dishonesty between partners
- Poorly written partnership agreements
- Clashing partner personalities or morals
California Business Partnership Dispute Lawyers
At Mathew & George, we have an experienced team of legal professionals who can manage any type of partnership dispute in Los Angeles. Reach out to our team of Los Angeles partnership attorneys if you think you need help navigating a case when dissolving your business. We will arrange a consultation to meet with you and discuss the details. It is important to protect your rights and to ensure that you do not violate any California state laws when you dissolve a partnership.
Many Americans go into business for themselves, and many do so with the help of a partner. A business partner also carries a legal definition: partnerships are considered either general or limited. It is important for business owners and their partners to understand the laws surrounding business partnerships that work to create a fair market and maintain ethical business practices—and to hire an experienced Los Angeles partnership attorney when necessary. Partnership laws also determine any personal liabilities for business debts or other forms of personal accountability for business practices.
General Business Partnerships (GPs)
In a general partnership, the individuals working as partners all have hands in operating and managing their business. Additionally, the partners are personally responsible for the business’s debts and other obligations. For example, if a business cannot repay a loan, the creditor can seize the business owner’s personal assets (such as homes, cars, or other valuable property).
Limited Business Partnerships: LLCs and LLPs
Limited partnerships are aptly named because they limit personal liability to some partners. There is one general partner and one or more limited partners who typically have no more involvement in the business other than investment. The most a limited partner risks here is his or her stake in the business, whereas the general partner risks personal loss.
Many business owners opt to create limited liability partnerships (LLPs) in states where this is allowed. Others incorporate their businesses into corporations, and still others form limited liability companies (LLCs). A corporation prevents personal liability for business debts for partners. LLCs combine aspects of both partnerships and corporations.
Dissolving a Business Partnership in Los Angeles
If you or your partner (or partners) decide that it is time to end your working relationship, you’ll need to legally dissolve the partnership. In many cases, one partner will “buy out” the other or compensate him or her for his or her investment in the business. The departing partner typically surrenders his or her company-related property before leaving. It is important for all members of a partnership to fully understand their partnership agreement or the original contract that the partners signed when they went into business together.
Most professionally drafted partnership agreements will clearly outline how business-related responsibilities and entitlements are divided. More often than not, the agreement will also stipulate the terms for ending the partnership, including what each partner owes the other. Partnerships operate under state law, so it is important for business partners in Los Angeles to possess a firm understanding of California state business partnership law. An LA partnership dispute lawyer who fully understands contracts can be a tremendous asset in ensuring all parties uphold their contractual obligations and that the partnership ends legally and fairly for all parties involved.
Non-Compete Provisions in Employment Contracts
In businesses that deal with unique product designs, formulas, or other intellectual property, a partner may possess business secrets after dissolving the partnership. Non-compete agreements ensure that a former partner cannot use this special knowledge to support a competitor. Specifically, many partnership agreements include “non-compete” clauses preventing a former partner from seeking new employment with a competitor.
Contact our legal team at Mathew & George today to schedule a free consultation or get more information about California laws surrounding business partnerships and non-compete agreements.