Maybe you shared a faded futon as college roommates or a second-hand Ford as brother and sister. Whatever the circumstances were that brought you together, at some point you were convinced that a business partnership was meant to be.
You fell into what I call “business partnership love.” You have this grand vision of how your small business will succeed, and you think, “I can make this work with this person. I’ll do this, and he’ll do that. This is going to be great!”
You hit the ground running
You form an LLC online (www.wdfi.org) and file your Articles of Incorporation. Presto! You just formed an LLC! Then you apply for an Employer Identification Number (EIN) with a few more clicks (https://www.irs.gov). You figure you have all you need to launch your side hustle and make a few bucks. Everything is honky-dory, until reality sets in and your small business is giving you BIG headaches. You realize that your business partner isn’t someone you can do business with after all. Suddenly, you’ve fallen out business partnership love, and your small business has become a BIG liability.
It’s so easy to fall in love
How many times have you fallen in love and fallen out of love in your life? Business partnership love is pretty similar. It’s easy to fall in love – but you can expect a heap of heartache when you break up unless you created the right fall-back plan.
Dissolution may be your only option. Unfortunately, there’s no simple divorce action for small business partners, and Wisconsin law requires a variety of civil actions. From my experience practicing business law in Green Bay, I can tell you that it’s not going to be cheap, easy, or quick.
Breaking up is hard to do
Business partners who have an LLC and EIN think they’ve got everything they need. They are wrong! They also need the proper Articles of Organization and a workable partnership agreement. Partners who set ground rules for their LLC can avoid a lot of problems that may lead to court action. Issues can be resolved if business partners develop their Articles of Organization before they form a business.
If you’re thinking about running an LLC, particularly if it’s a small rental company or a small business that you’re bootstrapping, it’s time to come in for a free consultation. Together we can look at whether Articles of Incorporation and Articles of Organization are needed and what these would include.
When it comes to small business partnerships, it pays to have a trusted attorney at your side. Contact me to schedule a free consultation today, 920-471-0929.
About Us: Attorney Devin Shanley is the approachable expert clients can trust. A native of Green Bay, Wisconsin, Devin has been developing legal solutions in his beloved hometown since 2012. Married to Mo and dad to two rambunctious kids, he has a soft spot for the Green Bay Packers, grilling out, and playing with his kids. His areas of practice are Estate Planning, Family Law, Business Law, and Non-Profit Organization Law. Schedule your free consultation by calling 920-471-0929.