Legal Question in Business Law in Washington

Re: Partnership Split

Is the business you co-own a limited liability company or a corporation? If it is, then the statutes for those sorts of entities will apply and they are fairly extensive regarding how such a relationship must end.

Re: Partnership Split

The fact that you did not draw up a formal partnership agreement does not mean you do not have a partnership. It simply means that the "default" provisions of the Washington statutes apply.

Under the default provisions, if the court finds that there is a partnership, you own 50%. He cannot just hand you your hat and throw you out. Under the circumstances you describe, where you have been holding yourselves out to vendors and customers as partners, and have been working together to build the business, with both of you investing, the court is likely to find a partnership.

The details always matter, so I enourage you to spend the time and a little bit of money to talk to an attorney about your case and to explore specific legal steps you should take to protect your interests.

If this is the kind of partner you have, you might be better off not to try to continue in business together with him, but if you decide to part company, it should be under terms that are fair.

Re: Partnership Split

Dear Sir/Madam:

Based on the facts you present, a partnership may well have been formed irrespective of whether or not you and the other individual entered into a written partnership agreement.

It may be suggested that you contact an attorney for further review.

Thank you.

Respectfully.