Legal Question in Business Law in California
dumping a business partner
My business partner and i opened a dance studio. She is very difficult to work with as are most business partners, and thats not the problem. She is holding the business back. She doesn't contribute as much time or energy as I do. I teach alot of classes, I am the brains behind it, and I have put in the most money. Currently the business is starting to pick up and slowly we are getting bussier, which I know takes time. I am interested on how I can get rid of her. I would be able to slowly pay her back for what she put in, I would never dream of taking her money. The business is a partnership, however I am the only one on the lease for the space. How can I go about buying her out or getting rid of her? Can I even do that? What are my options?
4 Answers from Attorneys
Re: dumping a business partner
Your options are to negotiate a resolution acceptable to both parties, or end up in litigation, or walk away from the business. If you want legal help with your problem, negotiations, and settlement agreement, contact me. An outside neutral can usually get better results than emotionally involved parties. Attorneys are trained and experienced in getting all the needed terms and protections against later legal problems covered in the agreement.
Re: dumping a business partner
You may file for a dissolution of partnership in which the assets will be distributed equitably. Filing of the suit may initiate buy-out discussions. Better to do it with attorneys so as to have objective discussions. Contact me directly.
Re: dumping a business partner
This should all be addressed in the written partnership agreement you hired an attorney to prepare at the beginning of your partnership.
If not, then hopefully other readers will learn from your mistake.
Otherwise, see Mr. Bravos' answer (and also keep in mind whatever you can negotiate with the other party that is mutually agreeable will also work, too, and will likely be a lot less costly than going to court).
Re: dumping a business partner
Once your partnership agreement is reviewied, I suggest a strong attorney letter requesting a meeting and then trying to dissolve the partnership short of litigation. If that suggestion does now work, a lawsuit to dissolve the partnership should be filed.
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