When two individuals come together to run a business in Ohio, they form a business partnership. In many cases, the two parties will formalize their arrangement with a written agreement, in which they will specify how much participation and liability each owner will have. However, even with an agreement in place, many partners find themselves disagreeing over various aspects of the business. Here are some of the most common partnership disputes that business owners experience.
Monetary issues or breach of fiduciary duty
In many partnerships, one partner controls the money while the other handles the day-to-day operations of the business. Both parties owe a duty of loyalty and fiduciary duty, meaning that they commit to doing what is best for the business, as opposed to acting selfishly. As a result, the person handling the money may be accused of embezzling funds, or converting company money for their own personal use, particularly if the other partner does not have a clear picture of the business’ financial status. Profit sharing disputes are also common, where one party accuses the other of not sharing profits equally.
Disputes over responsibilities
In partnerships where there are clearly defined roles for each person, particularly when all responsibilities are shared equally, there may be accusations of one partner not pulling their weight in the business.
Dispute over resources
Partners may find themselves disagreeing over financial resources, and determining what certain funds should be used for.
Dispute over dissolution
When one partner wants to shut down the business and the other wants to keep things going, there may be a dispute over whether to dissolve the business and how soon to do so.
Partnership disputes occur regularly, but some are bigger than others. If you find that you and your business partner are unable to come to an agreement on one or more issues, a business law attorney in your area may be able to help.