When the entity is formed everyone is friendly, on the same page, excited about the new business and ready to work hard. Then business and life happen and somewhere along the lines things are not as rosy anymore. One partner is burning the midnight oil while the other is leaving at noon on Fridays to play golf. Commonly one partner thinks they are carrying all the load. Other times the entity was structured as a 50/50 partnership and there was never any consideration on decision making, roles and responsibilities or how to deal with a disagreement and how to exit the partnership is needed.
Many times a partnership will eventually work itself out, but only after much stress and expense for all parties involved. Businesses close because of the inability to reach common agreement.
Recently we came across an article written by Dick Bartram of HenkeBartram PLLC. In this article he addresses some mistakes commonly made when forming or joining an LLC. Please spend a few minutes and review his article. Hopefully you are reading this in time to save yourself and your partners significant heartache.
Company Counsel by Dick Bartram
Written by Rich Shockley, CBA, CGBP