Business Law | Willcox, Buyck & Williams, PA

How Do I Properly Dissolve a Business Partnership in South Carolina?

Posted on September 9, 2026

Properly dissolving a South Carolina business partnership generally requires reviewing the partnership agreement, establishing the basis for dissolution, winding up the business, paying outstanding obligations, distributing remaining assets, and completing final tax requirements. Dissolution does not immediately end the partnership or automatically eliminate existing liabilities. South Carolina partnership dissolution is governed by the state’s Uniform Partnership Act, found in Title 33, Chapter 41 of the South Carolina Code.

What Is the First Step in Dissolving a South Carolina Partnership?

Start by reviewing the partnership agreement. It may establish when the partnership can be dissolved, how that decision is made, who handles winding up, and how partnership property is divided.

State law also identifies events that can trigger dissolution. Under S.C. Code § 33-41-930, these can include expiration of an agreed term, completion of a particular undertaking, a partner’s express will in certain circumstances, agreement among the partners, death or bankruptcy of a partner, or a court decree.

The decisions made when forming a business can affect what happens at dissolution, so partners should first confirm the business structure and review its governing documents.

What Happens After a Partnership Is Dissolved?

Dissolution does not immediately terminate a South Carolina partnership. Under S.C. Code § 33-41-920, the partnership continues until the winding up of its affairs is complete.

Winding up may include:

Completing pending transactions
Collecting money owed to the partnership
Addressing outstanding contracts
Paying creditors and other liabilities
Selling or transferring partnership property
Distributing remaining assets

The order of distribution matters. Partnership property generally must first be applied toward liabilities before any remaining surplus is distributed to the partners.

Partners should also document payments, asset transfers, and distributions so there is a clear record of how the partnership’s affairs were concluded.

Can a Partner Still Bind the Partnership After Dissolution?

In some circumstances, yes. South Carolina law recognizes that a partner may continue to bind the partnership through actions appropriate for winding up its affairs or completing transactions that were unfinished at dissolution.

Notice can also affect post-dissolution authority. S.C. Code §§ 33-41-970 and 33-41-990 address how knowledge or notice of dissolution can affect whether later actions bind the partnership. Section 33-41-970 also provides for advertised notice in certain circumstances involving third parties who knew of the partnership but had not previously extended it credit.

Because the effect of notice depends on the third party’s relationship with the partnership and the circumstances, partners should determine what individual or public notice is appropriate as part of winding up.

Are Partners Still Liable for Debts After Dissolution?

Potentially. Under S.C. Code § 33-41-1010, dissolution by itself does not discharge a partner from an existing partnership liability.

Partners should identify outstanding loans, leases, vendor accounts, contracts, tax obligations, and other liabilities before making final distributions. An agreement among the partners assigning responsibility for a debt also does not necessarily release another partner from liability to the creditor.

Disagreements over debts, partnership property, distributions, or conduct during winding up may also develop into business litigation.

What Tax Steps Are Required When Closing a Partnership?

A partnership generally must file a final Form 1065, U.S. Return of Partnership Income, for the year it closes and indicate that it is the final return. Each partner should also receive a final Schedule K-1 reporting that partner’s share of partnership income, deductions, credits, and other applicable tax items. At the state level, partnerships should also complete their applicable tax filing requirements with the South Carolina Department of Revenue.

Selling or distributing partnership property can create additional tax consequences. Partners should consider whether funds need to be reserved for taxes or unresolved liabilities before making final distributions.

Why Is Following the Dissolution Process Important?

Simply stopping operations does not complete the dissolution process. Unfinished transactions, unpaid creditors, active contracts, tax responsibilities, and undistributed property may remain after the partners decide to end the business.

Following a documented winding-up process creates a clearer record of what happened to partnership debts and property while reducing the risk of obligations surfacing after the business has closed.

Take the Right Steps to Close Your South Carolina Partnership

A partnership dissolution can involve outstanding debts, unfinished transactions, notice to third parties, asset distributions, and tax obligations. Addressing each part of the winding-up process can help prevent unresolved issues from following the partners after the business closes.

Willcox, Buyck & Williams, P.A. helps South Carolina business owners address partnership dissolutions and disputes that arise when business relationships end. Contact us to discuss the steps needed to properly wind up your partnership.

Does My South Carolina LLC Actually Need an Operating Agreement?

Posted on July 8, 2026

South Carolina does not legally require an LLC to have an operating agreement, but operating without one means the state’s default LLC rules govern your business. While many business owners skip this document, an operating agreement can help prevent disputes, clarify ownership rights, and establish rules that better fit your company’s goals.

Is an Operating Agreement Required for a South Carolina LLC?

No. South Carolina law does not require an LLC to adopt a written operating agreement.

If you are forming a South Carolina LLC, it is important to understand the difference between the state’s filing requirements and the internal rules that govern how your business operates. South Carolina’s Uniform Limited Liability Company Act recognizes operating agreements and allows LLC members to establish rules governing ownership, management, and company operations. Under S.C. Code § 33-44-112, an operating agreement can define how the LLC will be managed and how members will interact with one another.

What Happens If You Do Not Have an Operating Agreement?

Without an operating agreement, South Carolina’s default LLC rules generally determine how the business operates. While those rules provide a framework for running the company, they may not reflect how the owners intended to share responsibilities, make decisions, or handle future changes.

Areas commonly governed by default statutory rules include:

How profits and losses are allocated
Voting rights and management authority
Admission of new members
Buyout rights when a member leaves
Dissolution and winding up procedures

For example, members may assume profits will be distributed based on each person’s investment in the company, while South Carolina’s default rules may produce a different result. Similar issues can arise when owners disagree about major business decisions, a member wants to exit the company, or the business needs to be dissolved.

A well-drafted operating agreement allows LLC owners to establish rules that fit their business rather than relying on default provisions. It can also reduce uncertainty by documenting how the company will operate before disputes arise.

Why Are Operating Agreements Especially Important for Single-Member LLCs?

Many owners assume an operating agreement only matters when multiple people own a business. In reality, single-member LLCs often benefit significantly from having one.

A written operating agreement helps demonstrate that the LLC is operating as a separate legal entity rather than as an extension of the owner’s personal affairs. If a lawsuit arises, maintaining clear business records and following formal company procedures can support the argument that the LLC’s liability protections should be respected.

An operating agreement can also establish procedures for:

Successor ownership if the owner dies or becomes incapacitated
Business management decisions
Recordkeeping practices
Asset and liability separation

The U.S. Small Business Administration notes that operating agreements can help define ownership, management authority, and other internal business rules, even when state law does not require one.

What Should a South Carolina LLC Operating Agreement Include?

Every business is different, but most operating agreements address several core issues.

Common provisions include:

Ownership percentages
Member capital contributions
Profit and loss allocations
Voting rights
Management responsibilities
Procedures for adding or removing members
Buyout provisions
Dispute resolution procedures
Dissolution procedures

Addressing these topics in advance can reduce uncertainty if disagreements arise later.

For multi-member LLCs, buyout provisions are often particularly valuable because they establish what happens if a member wants to leave, retires, becomes disabled, or passes away.

What Are Common Operating Agreement Mistakes?

Many LLC owners create an operating agreement once and never review it again. Others rely on generic online templates that do not reflect how the business actually operates.

Common mistakes include:

Using a template that does not comply with South Carolina law
Failing to address member departures or buyouts
Ignoring succession planning
Not updating the agreement after ownership changes
Creating terms that conflict with the LLC’s actual practices

An outdated agreement can create nearly as many problems as having no agreement at all.

Protect Your Business Before Disputes Arise

An operating agreement may not be legally required in South Carolina, but it often provides clarity that state default rules cannot. Whether you are starting a new business, operating a single-member LLC, or managing a company with multiple owners, a carefully drafted operating agreement can help define expectations, reduce uncertainty, and protect the long-term stability of the business.

If you have questions about creating, updating, or enforcing an LLC operating agreement, contact Willcox, Buyck & Williams, P.A. We can review your business structure and help you develop governance documents that align with your company’s goals.

How to Start a Sole Proprietorship in South Carolina

Posted on May 12, 2026

South Carolina does not require sole proprietors to file formation documents with the Secretary of State, but you still need to address tax registration, local licensing, and liability considerations before you begin operating.

Starting a sole proprietorship is fairly straightforward because South Carolina does not require you to file formation paperwork. It is easy to start a sole proprietorship in Myrtle Beach or Florence, but that simplicity also means there is no legal barrier between your business obligations and your personal assets. Getting things wrong can lead to penalties, unexpected tax bills, and personal liability for every business debt you take on. Understanding what you need to do and what risks to plan for matters from the beginning. A South Carolina business law attorney at Willcox, Buyck & Williams can help you start your business on solid legal footing.

What Is a Sole Proprietorship?

A sole proprietorship is the simplest form of business structure in the United States. It is an unincorporated business owned and operated by one person, with no legal distinction between the owner and the business entity. In South Carolina, you do not need to file formation documents with the Secretary of State to create one. You become a sole proprietor the moment you start conducting business on your own.

This simplicity makes the sole proprietorship a popular choice for freelancers, consultants, and small business owners across South Carolina. The structure works well when you want to test a business idea, offer professional services, or operate a small retail shop without the cost and complexity of forming a separate legal entity. However, the ease of formation does not eliminate your legal and tax obligations, and there are several steps you should take before you begin operating as a sole proprietor.

How to Set Up Your Business in Florence or Myrtle Beach

Although South Carolina does not require sole proprietors to register with the state, there are local and tax-related steps you need to take before you start operating. The specific requirements depend on where and how you plan to conduct business, but the following steps apply to most sole proprietors in the Florence and Myrtle Beach areas.

If you plan to operate under a name other than your own legal name, you can usually register that trade name (often called a “doing business as” or DBA) with the appropriate local office in the county or city where you do business, such as the county or city clerk or the business license office. South Carolina does not maintain a statewide DBA registry for most businesses, so these filings are handled at the local level rather than through the Secretary of State.

The Certificate of Assumed Name form must be notarized before submission to the county clerk. Notarization procedures and fees vary by county. Some clerk offices may provide notarization services. Contact your county clerk directly to confirm what services and fees apply. While South Carolina does not legally require sole proprietors to file a DBA, doing so establishes a public record of your business name and may be needed for opening a business bank account.

You will also need to register for a business tax account with the South Carolina Department of Revenue through MyDORWAY, the state’s free online tax portal. If your business sells taxable goods, you must obtain a retail license before making any sales.

The retail license costs $50 and does not expire as long as the same owner operates the business at the same registered location and continues to make sales. However, the license must be surrendered if no retail sales are made for 24 consecutive months, and a new owner must apply for a new license if the business is sold.

Check with your local city or county government about business license requirements in your area as well, since these vary by municipality.

If you plan to hire employees, you will need an Employer Identification Number from the IRS. Even without employees, an EIN is useful for opening a business bank account and keeping your Social Security number off business documents. You can apply for one at no cost through the IRS website.

Depending on your industry, you may also need professional licenses or permits. South Carolina requires specific credentials for occupations such as contractors, cosmetologists, and real estate agents, among others. Check with the South Carolina Department of Labor, Licensing and Regulation to confirm whether your line of work has additional requirements.

Tax Responsibilities for South Carolina Sole Proprietors

As a sole proprietor, your business income flows through to your personal tax return. At the federal level, you are subject to self-employment tax of 15.3% on your net earnings if those earnings are $400 or more for the year, which covers your Social Security and Medicare contributions. You will report your business income and expenses on Schedule C of your federal return and calculate self-employment tax on Schedule SE.

At the state level, South Carolina taxes individual income at graduated rates. Sole proprietors report their business income on their state return and pay accordingly. If you expect to owe more than a certain threshold in taxes for the year, both the IRS and the state may require you to make quarterly estimated payments to avoid underpayment penalties.

South Carolina also requires businesses to collect and remit sales tax on most retail sales of tangible personal property. The state sales tax rate is 6%, and some local jurisdictions impose additional taxes. Your retail license registration through MyDORWAY sets you up to file and remit sales tax on the required schedule. Keeping detailed records of all income and expenses throughout the year simplifies tax preparation and protects you if your return is ever reviewed.

When a Sole Proprietorship May Not Be the Right Fit

The biggest drawback of a sole proprietorship is unlimited personal liability. Because there is no legal separation between you and your business, your personal assets, including your home, savings, and vehicles, can be used to satisfy business debts or legal judgments. This is a meaningful risk for businesses that involve physical services, product sales, or significant contracts.

If liability protection is a priority, forming a limited liability company or choosing another business structure may better serve your needs. An LLC creates a legal barrier between your personal assets and your business obligations while still offering flexibility in how you are taxed. Consulting with an attorney before you commit to a structure can help you evaluate the trade-offs based on your specific plans and risk profile in South Carolina.

Start Your South Carolina Sole Proprietorship on the Right Foundation

Launching a sole proprietorship is one of the fastest ways to start a business, but getting the details right from the beginning saves you time and money down the road. Whether you are opening a business in Florence, Myrtle Beach, or elsewhere in South Carolina, our attorneys at Willcox, Buyck & Williams have helped entrepreneurs across the region for over 125 years. Contact us to discuss your plans with an experienced business law attorney.

Choosing the Right Business Structure: LLC vs. Corporation vs. Partnership

Posted on October 1, 2024

Every entrepreneur has an important decision to make when launching a new enterprise. The structure of the business shapes its legal liability, tax obligations, ownership, and more.

If you are considering launching a new business or are already in the process, consider the pros and cons of partnerships, corporations, and LLCs as detailed by our South Carolina business attorney.

Business Partnership

A company started and owned by two or more individuals can take the form of a business partnership. Though using a partnership structure instead of an LLC creates more legal liability, this approach also has some advantages. Partnerships are relatively simple structures that take the form of limited or limited liability partnerships.

Limited liability partnerships (LLPs) differ from the limited variety in that they cap the owner’s legal liability. The LLP safeguards both partners against the partnership’s debts and respective partners’ actions.

In contrast, limited partnerships are characterized by a single general partner with unlimited liability. The remainder of the partners have limited liability. Partnerships are generally favored by enterprises with multiple owners looking to test out their value proposition before developing a more formal organization.

LLC

LLC is an acronym short for legal liability company. If you are launching an enterprise that you suspect might face legal liability down the road, lean toward an LLC. Whether that liability stems from a product, employees, or overly litigious customers, the LLC structure shields your personal assets.

Choose an LLC, and only your company’s assets will be subject to liability from lawsuits. LLCs are highly flexible, easy to maintain, and also have the potential to be converted to a corporation. LLCs are also commonly favored as they have more favorable tax obligations than corporations.

Corporation

Corporate structures are advantageous in that they make it easier to raise capital. Corporations raise funds through the selling of shares of stock. Extending such a partial ownership stake to outsiders also facilitates the attraction of new hires.

If your business is looking to raise money through new owners or if you think it will increase in value as a publicly traded company, choose the corporation structure. Unlike LLCs and partnerships, corporations are required to pay income tax on all profits generated. It is also possible for corporate profits to be double-taxed. The initial tax is when the company generates a profit. The second tax is implemented after shareholders receive dividends.

Though corporations provide strong legal liability protection, they are comparatively expensive to form. Moreover, there are different types of corporations to choose from. As an example, C Corporations are legal entities completely separate from their owners.

S corporations sidestep the aforementioned double taxation. This corporate structure allows for profits and even some of the corporation’s losses to move directly to owners’ income without a corporate tax.

Learn More During a Consultation With Our South Carolina Business Attorney

Trusts are powerful tools for incapacitation and estate planning. They also assist in asset protection and tax planning. You can learn more about trust agreements during a consultation with an experienced estate planning attorney in South Carolina. Contact us for a consult today.

Work-from-Home: Considerations for Remote Work Arrangements

Posted on September 3, 2024

Working from home creates a distinct set of legal hurdles. If you own or manage a business or work from home as an employee, you should be aware of the relevant legal requirements. Our South Carolina business attorney’s guidance will help you maintain full compliance with employment law.

Be Aware of WFH Compliance Requirements

Employment law compliance requirements differ by state. Employers and employees should both be aware that there might be additional work-from-home employment compliance requirements when one works outside of the company’s home state. Moreover, remote workers also have the potential to present hurdles in the form of registration requirements and even tax implications.

Consider a situation in which an employee works in a state different from that of the employer. State tax withholdings from wages and even unemployment taxes are two unique payroll challenges to overcome. Employees are to pay taxes to the state where they conduct work in accordance with the language of the physical presence rule.

There is also the potential problem of double taxation in which income tax is applied in the state the work-from-home employee resides in and where the employer is located.

Those engaging in work-from-home or considering it should be aware of the foreign qualifications. This qualification is applicable to businesses that are formed as limited liability companies (LLCs) or corporations and have workers in a state outside of the organization’s state of incorporation/formation. It might be necessary to qualify the LLC or corporation in the foreign state to formally obtain authority to conduct business there.

Permission to Work at Home

Though few know it, some municipalities mandate that those who work from home secure a home occupation permit. Several states require such strict licensing and permitting yet few remote employees are aware of the rules. The failure to obtain a home occupation permit has the potential to present problems at tax time.

Remote Worker Classification

Employers sometimes classify those who work remotely as independent contractors to cut payroll costs. However, the mere fact that one works remotely does not automatically make him or her an independent contractor. The classification of employees is a complex process that often requires the expertise of a South Carolina business attorney.

Additional Considerations of Note

Every remote worker should be trained in data security. Moreover, such workers should be aware of potential legal liability for the improper disclosure of data. Employees should also have clear guidelines regarding the role’s duties and work hours for workers’ compensation purposes.

Remote workers and their employers should also be aware of a potential tax nexus. This term describes situations when businesses have a tax presence established by conducting business in a state outside of their primary location. The specific activities of the remote workers have the potential to affect tax status.

Learn More During a Consultation With Our South Carolina Business Attorneys

You don’t have to navigate the employment law maze on your own. Our South Carolina business law attorneys are a call away. Reach out to us today to schedule a consultation.

Business partners shaking hands after working on confidentiality agreement

Drafting Non-Compete & Confidentiality Agreements: Legal Considerations for Protecting Company Interests

Posted on September 1, 2024

The details of your company’s confidentiality and non-compete agreements play an important role in protecting the organization. Consult with an SC business attorney when drafting and reviewing such agreements, and you’ll safeguard what matters most: your bottom line.

Without further ado, let’s take a quick look at the main points of concern when writing legal agreements.

The Top Legal Considerations When Drafting Agreements

The small print of confidentiality and non-compete agreements has the potential to prevent losses that amount to thousands, hundreds of thousands, or even millions of dollars. An SC business attorney’s expertise is necessary to write and analyze the language of such agreements. Even one grammatical, punctuation, or linguistic misstep has the potential to pave a path toward an unfavorable court ruling.

As an example, timeframes, and geography play important roles in some agreements. Legally “bulletproof” non-compete agreements narrowly identify specific timeframes and geographic restrictions.

Such limitations are to directly address the interests of the business and also reflect the nuances of the field’s landscape. Even the specific locations where the company does business or is planning to conduct business should be addressed.

The prevailing theme is that legal agreements are to be written with the company’s interests in mind. The end goal of such agreements is to protect the organization’s interests in the form of the following:

Client relationships
Proprietary information
Trade secrets
Additional intellectual property

Ideally, the language will be clear and cogent with a sharp focus as opposed to broad in scope with extensive restrictions that will likely be ruled unenforceable.

Restricted Activities and Length of Restriction

The best confidentiality and non-compete agreements are specific to the point that they identify specific activities that are restricted. Moreover, the length of the restriction of those activities must be identified.

Restrictions in non-compete agreements encompass the exact actions that employees cannot take after departing a position. The overarching aim of such restrictions is to prevent departed employees from sabotaging or otherwise hurting their previous employer.

In general, most such agreements typically last between six months and a couple of years. However, individual states have specific legal requirements for confidentiality and non-compete agreements. There is no sense in attempting to understand the nuanced rules of legal agreements in South Carolina when experienced professionals are a call away.

When in doubt, lean on an SC business attorney to write, review, and amend your confidentiality and non-compete agreements. Those with experience drafting and analyzing such agreements are capable of achieving the delicate balance between employer and employee interests.

The best agreements are fair to both parties, withstand scrutiny in court and ultimately prove effective for the duration of the contract.

Learn More During a Consultation With Our South Carolina Business Attorneys

The subtleties of your confidentiality and non-compete agreements have the potential to make the difference in wins and losses in and out of court. Our SC business attorneys are here to help create, review, and modify your company’s legal agreements.

Reach out to us today to schedule a consultation.

How Does the Choice of Business Structure Impact Liability?

Posted on May 3, 2024

When you begin a business, you must choose the business structure for your company. Your business structure affects how the business and the owners are legally and financially liable for company debts and obligations. Therefore, it is crucial for every business owner to work with a South Carolina business attorney to be aware that the decisions they make regarding the business structure affect potential personal liability.

Overview of Business Structures and Their Liability Aspects

The level of personal liability for business owners differs depending on the business structure they choose for their company. The most common types of business structures in South Carolina include:

Sole Proprietorship

A sole proprietorship is the most straightforward business structure to form. Because it is not a legal entity, the owner is personally responsible for all business debts and liabilities. If someone sues the business, they are suing the owner. A sole proprietor pays personal income taxes on the business income on their personal tax return.

Partnership

There are two types of partnerships – a general partnership and a limited partnership.

A general partnership is a business entity of two or more individuals who agree to operate a business. The partners are personally liable for all business debts and obligations. Unless the partnership agreement states otherwise, all partners can make decisions for the business that are binding on all partners.

A limited partnership has at least one general partner and one or more limited partners. Limited partners do not participate in the management of the company. Therefore, a limited partner’s personal liability is restricted to the amount they invested in the company.

Partnerships are pass-through entities for tax purposes. The partnership does not pay taxes on income. The partners pay personal taxes on the income they receive from the partnership.

Corporation

Corporations are legal entities. Individuals own shares of the corporation. They are not responsible for the debts and liabilities of the corporation. Corporations provide the highest level of protection from personal liability.

A C-Corporation files tax returns and pays taxes on the income the company earns. Shareholders pay personal income taxes on the amount they receive in dividends. However, if the shareholders elect to be classed as an S-Corporation, income passes through the company like a partnership and is taxed on the shareholder’s personal income tax return.

Limited Liability Company (LLC)

An LLC is a legal entity created under state law. It offers members (i.e., the owners) limited liability from personal responsibility for company debts and obligations. It does not provide the same level of protection from personal liability as a corporation.

Unless the LLC elects to be taxed as a corporation, income passes through the company to the owners. The owners report the income on their personal tax returns.

Consult With a South Carolina Business Lawyer About the Elements to Consider When Choosing a Business Structure

Personal liability and tax liability are two critical elements to consider when choosing a business structure for your company. However, understanding all of the legal and financial implications of each business structure is also essential.

Before setting up your business, it is wise to meet with an experienced South Carolina business lawyer. A business attorney will review the various business structures, explain the implications for personal liability, and discuss how the business structure impacts the company’s operations. Call Willcox, Buyck & Williams, P.A. to schedule a consultation to explore business structures with an attorney.

Lawyers looking over a business contract draft

Drafting Enforceable Contracts: Tips to Avoid Breach

Posted on February 25, 2024

In the business world, contracts are necessary to protect yourself and your business. In addition to being the backbone for nearly every transaction, contracts ensure the parties fulfill their obligations. Parties to a contract can suffer financial harm from contract breaches when the contract hasn’t been drafted properly and isn’t legally enforceable. Here are our top five contract drafting tips to help business owners avoid contract breaches in South Carolina.

1. Clearly Define the Parties and Terms of the Contract

Ambiguity is one of the most common causes of contract breach. Although the parties to a contract may assume that they agree on the terms’ meaning, disputes can arise when the terms are overly ambiguous. The contract should clearly identify all parties to the contract, including any subsidiaries or affiliates, to avoid confusion and potential breach of contract claims.

It’s also essential to clearly outline the scope of the contract. The contract should clearly state the rights and obligations of each party, including any exclusions or limitations. The terms should be specific about the duties and responsibilities of each party and not leave any room for misinterpretation.

2. Include Precise Payment Terms

Many breach-of-contract claims involve misunderstandings about payment terms. When drafting a contract, it’s important to include detailed terms related to payment. The contract should specify the amount, acceptable payment methods, and due date for each payment. To ensure accountability, it should also specify any interest charges or penalties that will be incurred for late payment.

3. Address Remedies for Breach of Contract

Breach of contract can happen even when the contract has been well drafted and is legally enforceable. The contract should address the remedies available for a party whom a breach of contract has injured. Addressing the available legal remedies upfront can prevent you from undergoing a lengthy court battle.

Consider including provisions that outline the penalties for a breach of contract. Examples of penalties for breach of contract include termination rights and liquidated damages. The contract should also include any available dispute resolution methods the parties must use.

4. Conduct Thorough Due Diligence

Before entering into a contract, both parties should conduct thorough due diligence. Learning about the other party’s financial stability, reputation, and previous business practices may help you avoid a breach of contract.

An in-depth understanding of the other party’s licensing requirements and compliance with industry regulations can help you make informed decisions and minimize risk. You may decide not to enter into a contractual agreement with the other party. If you do, you will benefit from working with an attorney to include provisions that protect yourself.

5. Hire an Experienced Attorney to Draft and Negotiate Contracts

Drafting legally enforceable contracts requires an in-depth understanding of contract law. Many individuals and businesses have begun using online contract services to save money. Unfortunately, these services don’t provide the same legal evaluation and experience as working with an attorney.

For over 125 years, the attorneys at Willcox, Buyck & Williams, P.A. have helped South Carolina businesses draft and negotiate effective, legally enforceable contracts. When you work with our attorneys, we will ensure your contracts comply with all applicable South Carolina and federal laws and regulations.

Contact an Experienced Contract Attorney in South Carolina

At Willcox, Buyck & Williams, P.A., our attorneys help South Carolina businesses navigate the complexities of contract law. We will answer your questions and work with you to draft an effective contract agreement that protects you and your rights. Don’t hesitate to contact Willcox, Buyck & Williams, P.A. to schedule a complimentary case evaluation.

Dissolving a Business Partnership: Legal Steps and Considerations

Posted on February 10, 2024

Dissolving a business partnership can be emotionally and financially painful. Some have even described the process as comparable to getting divorced. When individuals form a business partnership, they usually agree on all the major business issues. Partners may not anticipate the partnership breaking down because they’re on the same page when it begins.

Unfortunately, business relationships deteriorate more frequently than many of us realize. Disputes between the partners can arise, the business circumstances could change, or one partner may decide to leave or retire. Dissolving a business partnership can be a complicated legal process, and understanding the steps in the process can help you navigate it effectively.

1. Carefully Consider the Partnership Agreement

If you are considering dissolving your partnership or you’ve already begun the process, considering your partnership agreement is an essential first step. Ideally, you will have started your partnership by drafting and signing a written partnership agreement. The partnership agreement should include a clear exit strategy detailing the procedures each partner needs to follow to dissolve the partnership.

The agreement should also address issues such as handling existing customers, which partner should keep which business assets, and what will happen to the commercial property. If you have an LLC, you should review your operating agreement. An attorney can help you understand your obligations under your contractual agreements.

2. Try to Resolve Disputes Effectively

Tensions can be high when navigating disputes between business partners. You may think litigation is inevitable because you cannot resolve your disagreements. However, in many cases, partners can resolve their disputes out of court. Negotiating an amicable resolution through mediation or arbitration may save you significant money and protect your personal and business reputation.

3. Consider Your Ideal Outcome and Work Toward It

As you begin the negotiation process, having your ideal outcome in mind is essential. What would you like to happen at the end of the dissolution process? Write down your goals and then discuss your desired outcomes with your business partner. Instead of trying to sabotage each other, you can work towards reaching your future goals.

4. Consider Your Current and Future Customers

Keep sight of the needs of your customers or patients, especially if you are in a contentious dispute with your business partner. Your professional reputation will be on the line. If the disagreement leads to clients feeling like they’re being treated poorly or neglected, even if you don’t intend to do so, your prospects in your industry could be damaged. Maintaining professionalism and working toward the goal of dissolving the partnership as amicably as possible may help you retain customers in the future.

5. Consult with an Experienced Attorney

Dissolving a business partnership can significantly impact you personally and as a business owner. Working with an experienced attorney can help you protect your rights as you move through the process.

The South Carolina business Attorneys at Willcox, Buyck & Williams, P.A. are here to provide you with experienced legal counsel. We will help you understand your options and work with you to ensure you dissolve your partnership properly. We will work diligently to resolve your partnership’s dissolution amicably.

When necessary, our experienced litigators are prepared to represent you in court. If you are going through the dissolution of a business partnership, don’t hesitate to contact Willcox, Buyck & Williams, P.A. to schedule an initial consultation with one of our skilled attorneys.

Business partners yelling across the table

Defending Your Company From Unfair Competition (Slander/False Accusations)

Posted on January 5, 2024

You’ve worked hard to build your company. Deceptive and wrongful business practices can cause economic injury to your business. The law of unfair competition protects companies from fraudulent, deceptive, and unfair business practices. Companies can recover losses resulting from these practices.

Our experienced South Carolina business attorneys handle complex business tort cases like unfair competition claims. We are seasoned trial lawyers with extensive experience litigating business torts to protect our clients’ business interests. If your company has been damaged because of slander, false allegations, or other deceptive business practices, contact our office to speak with an attorney.

Understanding Unfair Competition

Unfair competition can crush a small business, making it impossible for the business to compete in the marketplace. Companies engage in many forms of unfair competition, including trademark infringement, fraud, interference with business relationships, and theft of trade secrets.

Slander and false accusations are another form of unfair competition. Defamation is false communications about your business that are likely to result in damage to your business’s reputation and economic loss. Slander is a type of defamation that occurs when someone makes false statements with malicious intent to cause harm to your business. For example, your competitor creates negative reviews about your company online or tells people your company is being investigated for defective products.

The South Carolina Unfair Trade Practices Act gives businesses a framework for bringing action against companies and individuals who use slander and false accusations as unfair methods of competition. However, these claims are complex and require an experienced business defamation lawyer to handle the case.

Identifying Slander and False Accusations

A defamatory statement is a false allegation that can severely disrupt business. The elements of slander and false accusations are:

A person or company made a false statement about your business
The statement was spoken or written to a third party
The party acted with negligence or intent to harm
The statement damaged your business

There is a difference between legitimate competition and unfair practices. Companies make statements to convince consumers to use their services or purchase their products. However, when a company fails to verify statements and accusations as accurate, they could be negligent. Likewise, intentionally making false accusations to hurt a company reveals malice and aforethought.

Legal Remedies for Allegations of Unfair Competition

Slander and false accusations against your company can damage your reputation, decrease your customer base, discourage new customers, lower employee morale, and decrease your bottom line. You have the right to file a lawsuit seeking compensation for damages and other remedies. Damages a business could recover from unfair competition include:

Injunctive relief to stop the party from continuing to make defamatory and slanderous statements
Compensatory damages for actual losses
Attorney’s fees and expenses for the filing of the action

The court may also award treble damages if the party willfully and knowingly violated the law by making statements to harm your business intentionally.

Preventative Measures for Businesses

It can be difficult to prevent unfair competition because you cannot control what another company or person says or does. A company can use contracts to prevent unfair competition by including non-disclosure clauses and confidentiality agreements. However, these contracts only apply to vendors, employees, and third parties engaging with the company.

A company can try to protect itself from accusations of wrongdoing by never misleading customers, misrepresenting a product or service, making false guarantees, engaging in price switching, or concealing pertinent information. However, the best way to protect your company from unfair competition is to retain a South Carolina business lawyer as soon as you suspect wrongdoing or fraudulent behavior. The sooner you stop unfair competition, the less your business may suffer.

Contact Us for a Free Consultation With a South Carolina Business Attorney

The best way to protect your business from slander and false accusations is with the help of an experienced South Carolina business attorney. At Willcox, Buyck & Williams, PA, our legal team fiercely defends you and your company against unfair competition. We pursue claims against the responsible parties to recover compensation for the damages and losses your business sustained. Schedule a consultation today to discuss how we can help you protect the business you’ve worked hard to establish.