Especially in podcasts and interviews, successful entrepreneurs tend to talk about business strategy the way.
Especially in podcasts and interviews, successful entrepreneurs tend to talk about business strategy the way that successful gamblers talk about gambling strategy, namely that it is a combination of luck and secrets that you must pay to find out about. What you will never hear in someone’s aspirational content, though, is about all the failures and setbacks that are an inevitable part of conducting business. Business law attorneys will tell you that things will not always go your way, no matter how determined or how charismatic you are. Your goal is not to avoid setbacks but to be thorough in setting up the safeguards that will make them less financially devastating to your business venture. An ounce of conflict management is worth a pound of “it” factor leadership. For help making plans that account for how to resolve conflicts before they start and enshrining your decisions in legal documents, contact a Tempe business law attorney.
Business Disputes Between Members of an LLC
A limited liability company (LLC) seems like the stress-free way to set up a business, at least when you first read about it online. The description of the LLC business structure on the IRS website makes it sound like you get all of the revenues with none of the risks, plus your tax burden is low. Of course, things can get ugly when business partnerships fall apart, no matter which business structure you use. An LLC operating agreement is your best defense against costly legal disputes in the event that you and your business partners decide to go your separate ways. It should include provisions for dissolving the LLC and removing a member, as well as for distributing profits among the members and formalizing the LLC’s protection of its members’ personal assets from efforts to collect debts incurred by the LLC.
Arizona does not require LLC members to draft and file operating agreements, so it is possible that your LLC is currently operating without all of the legal protections that the LLC business structure can convey. You can prevent many stressful and time-consuming disputes among LLC members simply by drafting an operating agreement and following its provisions. If one of your partners in the LLC does not abide by your operating agreement, you have recourse to its dispute resolution provisions.
Non-Compete Provisions and Other Sources of Employment Disputes
You know your business has hit the big time when you are able to hire at least one employee, but disagreements between employers and employees are inevitable. Some issues are simply a matter of following federal and state labor laws. If an employee accuses you of nonpayment of wages or overtime or of paying less than the minimum wage, a business law attorney can help you prove that you have complied with the law. The same applies if the Equal Employment Opportunity Commission (EEOC) investigates allegations that you have discriminated against employees or job applicants based on a protected characteristic such as race, family status, age, or national origin.
There are more gray areas surrounding non-compete clauses in employment contracts. Until recently, it was common for employers to place restrictions on the rights of employees to set up their own businesses in the same market niche as the former employer after the end of the employment relationship or even to accept employment with another company that competes directly with the former employer. In recent years, federal regulations have limited the use of non-compete agreements. The agreements must be of short duration, and they must only be for employees who are party to the former employer’s trade secrets.
Breach of Contract
Breach of contract disputes are usually easy to resolve as long as you have a contract; if you do not, then it is your word against the other party’s. You can win your case as long as you can show that you and the other party signed a contract and the other party did not fulfill its obligations. Ambiguity is your worst enemy in breach of contract disputes. The best way to avoid this problem is by signing airtight contracts with employees, vendors, clients, business partners, and anyone else with whom you conduct business. Even if you write your own contracts or base them on downloadable templates, it is best to have a lawyer review each contract before you sign it.
Contact Singular Law Group About Business Disputes
A business law attorney can help you prevent and resolve business disputes. Contact Singular Law Group PLLC in Tempe, Arizona, to set up a consultation.
A Tempe business law attorney can help you draft agreements with business partners and other stakeholders and can represent you in business disputes.
