Business Partnerships

Business partnerships — that is, companies with more than one owner — is a practice area that requires a thorough understanding of how the areas of business transactions, intellectual property, and dispute resolution intersect.

A company’s success is intricately tied to the way it is structured and organized from its inception. Owner disagreements over matters that should be decided when the business is established can stifle growth, demoralize employees and waste valuable assets in costly litigation.

A well-defined ownership agreement can prevent internal disputes from escalating into protracted court battles or help companies avoid these situations in the first place.

Find out about the business partnership flat fee service packages we offer!

A Cautionary Client Tale

How one company went through costly, acrimonious litigation because their shareholder agreement was created by an immigration attorney with no experience in legal partnership matters.

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How Kaufman Law PLLC can help

We’ve seen how bad relations among owners can destroy a business, especially if roles and expectations are not clarified from the outset. Based on personal pastexperience, as well as that as advisor to numerous client corporations and LLCs, we help clients weigh the legal, tax and related issues to determine the best legal form of business for them–whether a company starts with one or multiple owners.

We also provide ongoing advice to ensure that carefully-drafted ownership agreements are in place and understood by all parties as the business grows.

Kaufman Law PLLC provides sound legal advice and assistance for a wide range of business partnership issues, including:

Structure
  •  Forming corporations and limited liability companies
  • Establishing partnerships
  • Preparing and filing fictitious name statements (“DBAs”)
  • Preparing operating, shareholder and partnership agreements (including those of professional practices)
  • Assisting with documentation for women-owned businesses to get WBE certification
  • Preparing operating, shareholder and partnership agreements (including those of professional practices)
  • Developing succession plans
Operation
  • Setting roles each partner will play in the business
  • Establishing compensation arrangements
  • Allocating each partner’s financial (and other) contributions
  • Developing dispute resolution procedures
  • Formulating exit strategies and valuation formulas upon buyout of an owner’s interest

Get info on our business partnership flat fee service packages that can meet your needs by visiting our Flat Fee Attorney Pricing page.

A Cautionary Client Tale

One client had started a clothing design company with his childhood friend. However, their shareholder’s agreement had been prepared by their immigration attorney who had no legal background or expertise in partnership matters.

The agreement stated that our client would fund the company and the other partner would contribute the creative ideas and marketing know-how. Problems arose because the agreement provided no limits on how much our client was obliged to contribute financially or how much the other partner could spend. Not surprisingly, the partner was outspending what our client felt was necessary to keep the company afloat financially. Unfortunately, the situation ended badly in costly litigation.

This cautionary tale demonstrates the risk of using an unskilled attorney to prepare a shareholder agreement. Neither owner’s obligations were clearly defined, nor was there a viable exit strategy–situations that could have been avoided had the client come to us first.

Contact us for more information.

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