Business Dissolutions and Formations
In today’s global economy businesses and partnerships are formed every single day in the United States and worldwide. Establishing a business brings a sense of excitement and business owners usually desire to move quickly through the business formation process. However, all entrepreneurs, investors and business owners should carefully consider how to structure the business from the outset and engage an experienced and knowledgeable attorney from the get-go to help with the business formation process.
When forming a business, entrepreneurs can select from different types of business structures including sole proprietorship, general partnership (GP), limited partnership (LP), limited liability company (LLC), limited liability partnership (LLP), corporations and joint ventures. In order to incorporate most of these business structures with the State of Florida, owners must file a minimum of organizational documents. In addition, it is recommended for businesses to have in place other optional agreements in order to prevent disputes among owners about profits, distributions and direction of the business.
“Protecting your business interests is our top priority.”
Partnerships, joint ventures and business formations are the source of much heated business litigation
Litigation between partners involves more than just business disputes. Feelings of betrayal and broken trust give rise to resentment between partners and complicate the litigation which oftentimes takes on a life of its own and turns into a bitter fighting. In order to avoid this result in a business litigation it is important to have well-drafted agreements, operating agreements, partnership agreements, bylaws or other agreements detailing expectations and duties, as well as the consequences of failing to comply with the expectations.
Generally, these agreements regulate how decisions are made, what are the rights and duties of the owners, co-venturers, partners, members and managers, how accounting is done, the withdrawals of partner, members and co-venturers, and penalties for failing to perform according to the contract. When the formation documents do not have all the necessary parts, the default rules of the Florida Statute apply. These are generic rules that are intended to cover a wide variety of business situations and are not optimal for the specific needs of each firm.
Businesses do not always last forever and a business dissolution is sometimes on the horizon
A business may be forced into dissolution such as when there are disputes between partners or may dissolve for amiable reasons such as merger or buyout. Of course, receiving profitable offers from buyers to purchase the business is a great success for business owners. Regardless of whether the business dissolution is amicable or not, in the State of Florida there are many legal details and liabilities involved in the dissolution of a business that require the help of an experienced business attorney.
Dissolving a company is a complex and difficult process outlined by the laws of the state where the company is incorporated. We help protect your legal interests in a business dissolution to avoid disagreements in the process of winding up the business and liquidating the assets and develop an exit plan to shield the personal and professional assets.
Contact us, your business litigation in Florida, to assist with your litigation needs arising out of business formations and dissolution.