In the typical litigation process, a single individual will bring a claim against another person or entity. By contrast, business law often varies greatly in how it evolves. It is not uncommon for business to have multiple claims against a variety of parties simultaneously. We have represented businesses with disputes with other companies, the government, or even within the business itself. Due to the complex nature of the disputes that can befall Lakeway businesses, it is important to seek the advice of an experienced, knowledgeable attorney who can handle your specific issue.
Fortunately, many business disputes are resolved quickly and quietly to prevent further damage to the business, its leaders, and its reputation. Of the disputes that survive to the trial phase, a sizable portion end with an efficient, amicable settlement. One way to reach a settlement is through Alternative Dispute Resolution (ADR). ADR encourages disputing parties to achieve a solution by offering alternative forms of dispute resolution, including arbitration, mediation, and negotiation. Most people are familiar with negotiation, but in the ADR context, it is a formalized process in which the parties reach a solution independently through discussions. Mediation is similar to negotiation, except that a neutral third-party (the mediator) helps guide the parties to a solution. Arbitration also involves a neutral third-party (the arbitrator) but, with arbitration, the final decision is made by the arbitrator.
Different types of business disputes call for different types of dispute resolution methods. Figuring out which legal direction will produce the best results for your business can be difficult without an understanding of some of the basics of business law. Therefore, this article will offer a break down of different business entity forms in Texas, things to consider during a business dispute, and the common types of business litigation the courts serving Lakeway are accustomed to.
Choosing the most advantageous entity form is a major component of risk management and an important first step for any business.
Sole Proprietorship – A great number of small businesses in Texas operate as sole proprietorships. Under this form, a single person owns and operates the business. Many people find this form to be the simplest (and cheapest) way to do business. With the exception of employment disputes, the sole proprietorship structure generally does not lead to inner-business conflict.
Partnership – Partnerships are business that are owned by two or more people. As one of the oldest business structures, the creation of some forms of partnership can occur automatically. Today, there are three main forms of partnership:
Corporation – A corporation is, legally, a person. The key innovation of the corporation is the legal division of ownership and management. This division protects the owners (or, shareholders), from liability arising from the decisions of management.
Limited Liability Company – The business owners (or, members) receive liability protection. However, they may be required to include the LLC’s earnings on their personal tax returns.
Time and Cost: The resolution of business disputes, in particular, are often sensitive to the efficiency of the legal strategy employed. An often-overlooked aspect of business law is the need for the business law attorneys to adapt to their clients so that they can spend their time and energy on running the business as the dispute is resolved.
Bad Press: Stories involving local businesses are highly valued by local media organizations. Because of this, public perception of the business should always be considered when making decisions regarding a business dispute.
A non-exhaustive list of business law issues our firm routinely handles for businesses in Lakeway include:
Each type of business law matter demands a thorough analysis to ensure the best outcome for everyone involved.
If you are currently dealing, or have an anticipated business litigation dispute, finding a qualified attorney who is able to assist you with your specific legal needs is crucial. At Kirker | Davis LLP, we are happy to answer any questions or concerns about your business litigation matter in Lakeway. Contact Kirker | Davis LLP to schedule a meeting with an attorney today.