McNamee Hosea News & Press


Key Issues in the Transfer of a Business

Business owners need to protect themselves from issues connected to partnership disputes.

The decision to start a business is not something most people take lightly. They know that if they decide to move forward with their plans, they need to be sure that they have considered the various formation types available. They will want to minimize their financial liability while looking to maximize the potential profits that they may make.

During these initial stages of business formation, the individuals may simply be too focused on the positive side of things to spend any time discussing what will happen should things go wrong, especially if they are doing this without the assistance of a business law attorney.

Many businesses often have several different people involved in the ownership and operation of the entity. This can make it extremely challenging if one of the individuals needs to sell his or her share. If this was not planned for at the inception of the business, it could lead to major disputes between the remaining partners.

Dealing with these issues costs time and money, so it is important that they are resolved as quickly as possible. The remaining partners may simply decide to buy the other individual's interest of the company. This is sometimes the easiest solution, but still will require a careful analysis of the transaction to determine the impact that this will have on any profit-sharing or leadership concerns. Sales to individuals outside the original ownership group might need to be reviewed to make sure they have the resources necessary to make the purchase.

In sales of complete businesses, whether it is by an ownership group or by an individual, it will be necessary to examine the sale to learn the best possible course of action. Sales of these businesses often have a lot of external factors that need to be reviewed. These include tax complications, potential responsibility for any remaining debts as well as any non-compete provisions that may be tied to the sale. Individuals need to be sure they understand these issues before they agree to any transfers of their interests.

You need to be sure that you protect your assets when these kinds of matters arise. If you own a business, and have questions or concerns about a sale or partnership dispute, you should contact an experienced business law attorney in your area to learn more about your options. Your attorney can examine the situation, and help you develop creative solutions to your problems. This could help you avoid any of the distractions that often arise during these types of issues.