In the business world, just as in the domestic arena, not all partnerships work out. Even when the business appears to be running smoothly, it is wise to make sure your interests are protected, should the partnership dissolve for one reason or another.
At the law firm of Smith + Schwartzstein, our New Jersey business law attorneys have significant experience with the drafting, review and enforcement of partnership and operating agreements. Based in Morristown, our lawyers represent business owners throughout the state.
Avoiding Costly Disputes
The worst business disputes are typically partnership disputes. Many small-business owners have their financial resources deeply invested in their businesses. It can be extremely detrimental, both economically and personally, when one partner misappropriates funds, leaves unexpectedly or causes other issues. A carefully drafted partnership or operating agreement can help alleviate the potential for disagreements and bolster the business's success.
Operating Agreements For LLCs
An operating agreement essentially performs the same functions as a partnership agreement, except that it pertains to a limited liability company (LLC) instead of to two individuals.
In New Jersey, specific statutes govern business relationships in the absence of formal, written agreements between the parties concerned. It is important for parties who form an LLC together to have an operating agreement in place, because it will provide vital structure and governance to the business relationship. Without an operating agreement, both parties will be at the mercy of the New Jersey statutes.
Our law firm has seen numerous business arrangements fall apart, and in such cases, having a well-crafted partnership or operating agreement is vital. Learn more about how such a contract can benefit your business by scheduling a consultation with Smith + Schwartzstein. Call our Morristown office locally at 973-532-2962 or toll free at 800-779-4098, or contact us by email.