Legal Question in Business Law in California

Sever the partnership and don't ever enter into one again.

As a franchise attorney I entirely agree with the other attorney answer. This situation will only get worse if you allow it to continue. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Attorney

Franchise Foundations APC

It's not a partnership - it's a limited liability company, governed by very different laws. Nevertheless, I agree that continuing in a business relationship with an associate who does not fly on the same beam in the early days is probably (99% likely?) to have rougher seas ahead. Based on 30 years experience as an entrepreneur before deciding to practice business law, I recommend looking at how to pull the plug on the working-together arragement lawfully and expediently, and salvaging as much of the business opportunity you were intending to pursue together for yourself as lawfully possible, keeping in mind that you probably had a fiduciary relationship with the other LLC member.

Terminate the agreement and business and start over without him. Demand reimbursement from his share for any 'embezzlement' or misappropriation of company assets.