Operating a business as a partnership in Texas can be lucrative when operations are going well. However, like most relationships, there can be disagreements that spark internal problems. Handling these differences is essential when partners are involved in running the business. Resolving any disputes quickly is the best solution, which can be done by choosing the best method for the situation.
Mediation
One way to resolve problems with a partnership is by getting assistance from a mediator. A mediator is a neutral third-party who can assist in identifying and overcoming negative points and help the partners work towards a compromise or resolution. The mediator understands how to help define responsibilities and goals, which can help create a more transparent path for the business to follow.
Using a buyout or sell out to new owners
Another way to solve a conflict between partners is by having one of the partners bought out by other partners. Selling out to new owners is also an option if none of the partners want to continue the business operations.
Dissolving the company
In some partnerships, the partners may not be able to come to common ground. Dissolving the company may be the best path to take in this situation. It’s easiest if partners can agree to dissolve the company voluntarily. Otherwise, a judicial dissolution will be required using a lawsuit.
Filing bankruptcy
If there are financial problems, filing bankruptcy may be the best way to solve the problem. This path will often happens if the company is using too much debt and can’t generate the operations in a way to get out of this predicament
Filing a lawsuit against one or more partners
If any partners have committed misconduct in the business, a lawsuit may be required by other partners. This action seeks financial recovery for any damages caused by the misconduct.
Knowing the options to resolve problems with a partnership is essential. Choosing the appropriate path can be done based on the unique characteristics of the business or concern.
