Legal Question in Business Law in Washington

Re: busness partnership

If you have no partnership agreement and if the partnership was not for a particular term, she can dissociate from the partnership at any time. When she dissociates, you must buy her out, or else dissolve the business.

However, it might help negotiations if she understands that if you must dissolve the business, she is not necessarily entitled to $9000. She is entitled to her share of the greater of the net worth of all the assets or the selling price of the business as a going concern.

Frankly, if the business is five months old, it is probably right in that trough where it is worth very little. Most businesses take 1-3 years to really amount to much. If she is thinking that she is entitled to $9000, it may help things if she understands that is not necessarily the case.

Some other options to consider in your negotiations:

One - if another party might be interested in assuming her interest in the business, that new partner could buy her out. This would need to be someone you could work comfortably with, though, because you would have a new partner.

Two - Offer to buy her interest on installments, but for something more than what she would collect if you liquidated the business. The two of you would first need to establish what the true value of the business is.

Three - (This is a long shot) - If the business truly seems viable to you, a commercial lender might be willing to agree.

Good luck!