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Issues that can lead partnership disputes

| Dec 18, 2020 | Uncategorized |

There are many different businesses in Pennsylvania and they produce many different products and various services. The businesses are certainly run by people, but the business itself is often a separate legal entity. Businesses can be formed as corporations, limited liability companies, partnerships and other models. Each of these types business structures are unique and have different rules and protections and businesses need to choose the one that is most appropriate for their type of business.

For instance partnerships are generally more appropriate when there a few number of people who run the business and share in the responsibilities of doing that. However, partnerships also tend to be more personal because of the fact that only a few people are responsible for running the company and sharing in the profits and losses of the business. Like any relationship the partners can end up in partnership disputes.

Common partnership disputes

There are many different disputes between partners, but some are more common than others. One common dispute is over money. Some partners set up their business with one handling the financial side of the business while the other handles more of the sales or other parts of the business. In these situations, the partner who handles the finances may embezzle funds without the other one finding out for a significant period of time.

Another common dispute is over the operation of the company. There can be disputes over the direction of the business, over whether to take on different projects and other aspects of running the business. Partners may also have disputes over the ownership of intellectual property that was developed for the company by one of the partners.

There are many partnerships in Pennsylvania. There could be just two partners or more than that, but it is common for partners to have disputes. Sometimes they can resolve the disputes among themselves, but sometimes this is not the case and the dispute may result in litigation. Consulting with experienced attorneys could be beneficial in these situations.