It is inevitable that some business clients will end up in disputes with their business partners. Sometimes their business partner becomes unreachable. Sometimes their business partner is blocking key business deals or sabotaging the business. If this sounds similar to a situation you are facing with your current business partner, it may be time to think about dissolving the business or entering legal negotiations to resolve the dispute.
Hopefully, when your attorney helped establish your business structure, the operating agreement or corporate documents contained a provision about how disputes would be handled between partners. You can start by looking at the operating agreement or corporate documents for this provision and following the procedure it outlines. The members may need to agree to dissolve the entity.
If you don’t have an operating agreement or other corporate document that provides a framework or allows for dissolution, you may have to mediate the dispute or file a lawsuit to settle the dispute or dissolve the business. Typically, a lawsuit is the last resort. If you are in this situation, speak to an attorney to review your options.