What do you do when your partner wants to leave the company?
At Morgan Law Group, our Florida attorneys understand that not all partnerships last forever.
If one business partner decides he or she no longer wants to be involved in the company’s operations, the legal circumstances may become increasingly convoluted for both the partner who wants to leave and those he or she leaves behind.
We can help you sort through the details, to help keep the company on track during the process, whether the departure is sudden or planned.
What Steps Should My Company Take to Ensure a Fair Outcome for the Remaining Partner(s)?
While a partner’s departure and the circumstances surrounding the decision are uniquely complex for each company, understanding common contracts and regulations can help guide a better understanding of each party’s options.
LLCs and partnerships are typically managed by an operating agreement that outlines important details about the company, including:
- Rules, duties, and compensation of members
- Whether membership interest is freely transferable
- If a member wants to leave a business, whether the other partner(s) can buy out the leaving partner’s membership at a predetermined percentage of the company’s reasonable value
Operating agreements play a key role in developing the framework of organizations. However, Florida law does not require an LLC to have an operating agreement. In situations where no operating agreement is required, one partner leaving might automatically call for the dissolution of a company.
To ensure your business follows the proper protocol during these circumstances, it is a good idea to consult with a skilled Florida business partnership attorney to safeguard the best interests of the remaining partner(s) and guarantee the buyout or dissolution is fair and complete.
Keep in mind, if you are the only remaining partner, there may be tax implications to realigning your business type, which is something you must consider when determining the next steps.
Our experienced business litigation lawyers in Florida can help you determine what the departing partner’s obligations are, what you are entitled to because of the change, and how you can expedite the process without causing further disruption to the company’s operations.
Contact Morgan Law Group in Florida for a Free Case Assessment Today
If your business partner is considering leaving the organization for personal or professional reasons contact our Morgan Law Group attorneys in Florida to discuss the details of your partnership agreement or the lack of one today at 888-904-2524 for free case evaluation. We can help protect your rights throughout the process, so you can move forward with confidence.