{"id":6454,"date":"2017-04-11T08:44:22","date_gmt":"2017-04-11T12:44:22","guid":{"rendered":"https:\/\/dev2.facadeinteractive.com\/srddlaw\/?p=6454"},"modified":"2018-10-02T20:35:40","modified_gmt":"2018-10-02T20:35:40","slug":"business-divorce","status":"publish","type":"post","link":"https:\/\/www.stengerglass.com\/business-divorce\/","title":{"rendered":"Business Divorce"},"content":{"rendered":"<p style=\"text-align: left;\"><em>Like a marriage, before you enter a \u201cbusiness\u201d partnership, you should be aware of the possibility of a \u201cbusiness divorce\u201d. There are several reasons people start a business with a partner, including access to more funding, blending of talent and resources, etc. At times, partnerships are started among friends and\/or family with the belief that the relationship is strong and the partner(s) can be trusted.<\/em><\/p>\n<p><!--more--><\/p>\n<p><strong>But what happens when you and your business partner(s) disagree?<\/strong> Or your business partner dies or retires?\u00a0 What if one of you \u201cwants out\u201d? What happens with the seed money? How do you figure out the current value for a potential buy-out? How is that value determined?\u00a0 How can the business be \u201cdissolved\u201d or terminated?<\/p>\n<p><strong>Here\u2019s what you need to know beforehand to protect your business from this potential outcome.<\/strong><\/p>\n<p>There are several types of \u201cbusiness organizations\u201d available to you: partnerships, corporations, limited liability companies, etc.\u00a0 Each can have different legal and tax consequences to you and your partner(s).\u00a0 The type of business organization you chose governs the type of agreements you need to put in place.\u00a0 There are \u201cforms\u201d for such agreements and corporate requirements available by online services; however, those forms and agreements, even those prepared by many lawyers, are not complete or tailored to fit your needs.<\/p>\n<p>At times, businesses are started in someone\u2019s basement or with a contract on the back of a napkin with the intention of going back and filling out the paper work, but it may never happen. We strongly advise that you set up your business entity by using experienced business attorneys, like<strong> Stenger, Glass, Hagstrom, Lindars &#038; Iuele LLP<\/strong>, to make sure your interests are thought-out and protected correctly in the beginning to avoid potential catastrophe\u2019s down the road. You can refer to our <a href=\"https:\/\/www.stengerglass.com\/blog\/\">past blog on tips to starting a business in New York<\/a> for more information on what type of business structure is right for you.<\/p>\n<p>At Stenger, Glass, Hagstrom, Lindars &#038; Iuele LLP, we also handle litigated business divorces (e.g., when the proper documents have not been well thought-out, or not put in place at all, or when the relationship between partners has broken down completely). A recent Stenger, Glass, Hagstrom, Lindars &#038; Iuele LLP case concerned two brothers who formed a 50\/50 partnership (and later, an LLC) to own and operate a two-faceted business. Upon the discovery of one brother\u2019s alleged theft of corporate funds and business opportunities, the other brother (represented by <strong>Stenger, Glass, Hagstrom, Lindars &#038; Iuele LLP<\/strong>) sought to recover the diverted corporate funds and judicially dissolve the LLC.\u00a0 The case was particularly unique and difficult because the brothers did not have a written operating agreement for the LLC. <strong>Stenger, Glass, Hagstrom, Lindars &#038; Iuele LLP<\/strong> succeeded in judicially dissolving the LLC and compelling the judicial sale of the commercial premises over the objection of the offending brother. This case was picked up for publication in an industry \u201cbusiness divorce\u201d blog. <a href=\"http:\/\/www.nybusinessdivorce.com\/2016\/01\/articles\/buyout\/court-dissolves-llc-due-to-managing-members-self-dealing-and-dishonest-conduct\/\">Access it here<\/a>.<\/p>\n<p>In a subsequently filed case, <strong>Stenger, Glass, Hagstrom, Lindars &#038; Iuele LLP<\/strong> had the offending brother and his side-business judicially ejected from the business premises prior to its sale.<\/p>\n<p>If you are looking to start a business in New York as a sole proprietor, partnership, limited liability company or corporate entity, contact us today to protect yourself in the future.\u00a0 If you find yourself in or heading towards a dispute or \u201cbusiness divorce\u201d, <strong>Stenger, Glass, Hagstrom, Lindars &#038; Iuele LLP<\/strong> can help protect with that as well.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Like a marriage, before you enter a \u201cbusiness\u201d partnership, you should be aware of the possibility of a \u201cbusiness divorce\u201d. There are several reasons people start a business with a partner, including access to more funding, blending of talent and resources, etc. At times, partnerships are started among friends and\/or family with the belief that the relationship is strong and the partner(s) can be trusted.<\/p>\n","protected":false},"author":23,"featured_media":6455,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"cybocfi_hide_featured_image":"","footnotes":""},"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.6 (Yoast SEO v22.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Business Divorce - Stenger, Glass, Hagstrom, Lindars &amp; Iuele LLP<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.stengerglass.com\/business-divorce\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Business Divorce - Stenger, Glass, Hagstrom, Lindars &amp; Iuele LLP\" \/>\n<meta property=\"og:description\" content=\"Like a marriage, before you enter a \u201cbusiness\u201d partnership, you should be aware of the possibility of a \u201cbusiness divorce\u201d. 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