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Considering co-owner relationships when starting a business

On Behalf of | Jun 11, 2019 | Business Formation & Planning

There are many times in life where Florida residents may not want to take a certain step alone. In particular, parties who want to start their own businesses may find it useful to have a partner or co-owner of the business to help with certain aspects of operations. Of course, co-owner relationships can be tricky to navigate.

As with any type of relationship, a co-owner business relationship can have its ups and downs. At first, parties may feel as if they are on the same page only to see down the road that one party is not pleased with the decisions of the other party. In some cases, the issues in decision-making could become so severe that the company suffers because the co-owners cannot get along.

Because a co-owner is not an employee, one party cannot simply fire the other. If a partnership or co-ownership wants to dissolve, there are legal steps that must be taken. In particular, one owner may need to buy out the other party’s stake in the company if he or she wishes to move forward without that party.

When starting a business considering co-ownership could be useful. Of course, it is important, in the end, to ensure that the type of business structure created best suits the goals of the business owner and the company overall. If Florida residents are interested in starting their own companies and would like more information on the implications of co-owner relationships or partnerships, they may wish to speak with experienced business law attorneys.