Enriching Life Through Innovative Ideas SM

You can sue your business partner

When you start a business, you can only hope that things will proceed as planned and you and your business partner can successfully cooperate with each other for years to come. Unfortunately, it’s not always that simple. As a businessperson it is very possible you may run into some serious conflicts down the road that could potentially land you in court.

You can sue your business partner and likewise, they can sue you. When people think of lawsuits they often believe it is exclusively involving a business and some outside party. While this is true in many circumstances, lawsuits can also begin within a single company and as such, it is important to always be prepared for these potential internal legal encounters.

In these particular cases, they often become complicated relatively quickly, namely because most business partners typically begin their professional endeavors together as good friends. For example, one businesswoman thought of her business partner as a ‘great friend’, enough so that she trusted this individual to obtain 50% control of her company. Unfortunately, things went south when her partner allegedly stopped sharing financial information, made several baseless accusations, and as this businesswoman phrased it, “betrayed her.”

Fortunately, she was able to overcome these obstacles, however the two had to spend a long time finalizing breaking off the partnership. There was also no exit clause in their agreement, making it that much more difficult to part ways. Despite the setback, the company was profitable again one year after the dispute.

This is just one example showing that lawsuits can come from unexpected sources, including business partners you believe to be trustworthy. If this, or a similar situation happens to you, it’s critical to know what steps to take and to acquire a good legal team to guide you through the process and help it go as smoothly and efficiently as possible.

FindLaw Network

What Our Clients Say

Starting a new business can be a bit scary. Aside from worries of failure, there’s also the hassle of making sure all legal paperwork are properly filed. I reached out to Mr. Wang (Tommy) because of his excellent reviews and reputation and I am so glad I did. He was thorough and meticulous in answering all of my concerns and took time to find out special laws and policies regarding the kind of business I am starting. I could focus on the daily practical side of starting my new office without worry because I felt Tommy was reliable and took my case seriously. My business is opened and it’s all been a smooth start because of Tommy’s help. I have plans to start another business venture in the next few years and I already know I’ll be coming back to Wang IP Law.

The Shindig W.

I came to Tommy for help reviewing a licensing agreement I had secured with a well-known manufacturer. Tommy made sure I understood all the details in the contract and he negotiated with the company to improve my side of the deal. I mentioned to Tommy at my first consultation that we were looking to expand throughout the US and were investing a lot of money to make a big entrance into the market. I did not think I would have my store open so soon but Tommy also has connections with the local area and realtors to help me secure the location for my first store in the Los Angeles area. Tommy works a lot with the local businesses and he understands how to transition from the Asian market to US market. Within 8 months my store was open for business and fully operating. I must recommend Tommy to any business owners looking for help with contracts and improving their side of the deal. Tommy has the knowledge and experience to make sure there is a smooth process to open for business here, and make sure that your company is set up for success.


I think Tommy and his team by far considered the best people to work with in my 16 business years. Beside quick responses to all my inquiries, they also done things right and providing very professional solutions. I’m highly recommending Tommy and his firm to all business owners.

Calvin C.

I have been working on my Utility Patent for almost 4 years. I have hired and fired two very reputable IP firms because with all their expertise and reputation for being some of the top firms in IP Law, I felt a lack of connection and care in my product, time and financial investment. Then I found Tommy and his team. Tommy does not waste time. He and his team are professional and extremely thorough. After 4 years, I finally found a legal team that I felt spent the time to really understand the components of my utility patent. Tommy also very mindful of cost and how and where my money would be better spent. I really feel I am in great hands with Tommy and his team. They have been patient with my revisions. And most importantly, they made me feel that they fully understood the importance this patent is to me. It has been a great and comforting pleasure working with Tommy.


Read All