Hi, I'm Denice Gierach. Sometimes, even if your business partner started out as your best friend, you may still end up fighting, and your business can become deadlocked. Many of my clients have questions regarding business disputes, so I'm going to list the most frequently asked questions and their answers.
My partner is taking a larger salary and benefits than I do. What can I do about it?
This is why the front conversation when you first invest in a business is so important. When that happens, it may be tough to stop because now you’re at a real disagreement. How are disagreements going to be handled? Do you have to look at doing a mediation of sorts, and each sit in front of a mediator to determine the proper course of action?
The time to really come up with this is decide right up front, and write it down, as to who is going to be responsible for taking salary, and if it requires everyone’s vote in order to do it. Many times, there are things in a list that go into shareholder agreements, or operating agreements in the case of an LLC, that require a vote of a higher majority; 70%, 80%, 90% or even 100%, depending on how important that is, that it requires the vote of all. This is something that is important to look at and put to paper up front.
I hope that you've found my answers helpful. Please be sure to check out the other videos on my website, including those from our Frequently Asked Questions, the Gierach Law Firm Guarantees, and What to Ask for when You Are Considering an Attorney.
If you have more specific concerns or would like to talk with us, call (630) 756-1160 or visit www.GierachLawFirm.com.
Businesses across northern Illinois rely on The Gierach Law firm for outstanding legal services in all areas of business law, tax law, and estate planning. If your business is facing a business contract dispute or other legal dispute, the Gierach Law Firm can help. We keep our eyes on the big picture while advising our clients on the most effective strategy to obtain a successful result. Contact our Naperville law office for business litigation assistance in the greater Chicago area. We service clients in DuPage County, Cook County, Will County, Kane County, including Naperville, Aurora, and Chicago.
