I am in a 50/50 partnership and I am trying to buy my partner out. He gave me a paper today stating the $ he wants. And at the bottom it says if I dont pay on time, he will assume the business. He did put in most of the money but I filed all the IRS stuff and its a legal 50/50 partnership. What can he do if I dont pay his demands?
2007-01-22 10:51:58 · 8 answers · asked by Jimmy P 2 in Business & Finance ➔ Small Business
He could not run this business if i left...so that helps. Also, I would take the employees with me if it got nasty...and well, he would lose all his investment. But im not like that.
2007-01-22 11:00:27 · update #1
If your company or business is properly registered and both partners are on the registration documents. He can not simply take over and kick you out. Which ever partner wants to take over the business he must pay the other one out. If you own half the business, then an audit should be done, the books finalized, and balanced, and 50% of the companies worth and profits to date should be paid to you. If this is not done, and he continues to operate without you, he is entitled to a salary and 50% of profits and you get 50% profit plus interest on your investment. Although a company may be owned 50/50 the amount initially invested will determine your buyout. If he invested 80K and you put in 20K he is entitled to 80% of the business and you 20%. A termination of a partnership should be done by a lawyer. But if you don't sign over your part of the business by Monday, he can't legally assume it.
In response to your comments. If you left and took the employees, he is still in control of the business and you have employees with no work. He has his investment to protect and will not simply leave. even if he can't run the business without you he can sell off assets etc. If he doesn't pay any bills the company owes. You are legally responsible for them. This could get nasty. I suggest you get a lawyer and put a lein against the business and a restraining order against him selling any assets etc. also a hold an all bank accounts should be done.
2007-01-22 11:15:57 · answer #1 · answered by ? 6 · 0⤊ 1⤋
i'm no longer a criminal expert, yet fwiw partnerships could properly be shaped purely via verbal settlement. No exterior witnesses mandatory, as I know it. right here you have a written checklist it truly is signed via all events, so which you would be able to desire to have the skill to apply it to combat lower back.
2016-12-15 04:04:23 · answer #2 · answered by boulger 4 · 0⤊ 0⤋
Seek legal help immediately. If you can buy him out, set up a payment plan to do so.
I would also suggest that if you are buying him out, you need to get your partner out of any management position.
2007-01-22 11:04:20 · answer #3 · answered by John T 6 · 1⤊ 1⤋
I agree with John T answer above. Get legal advise. Don't rely on armchair advisors on YA.
2007-01-22 18:18:03 · answer #4 · answered by Anonymous · 0⤊ 1⤋
This is just the start of negotiations my friend. Either agree or go back with a counter offer.
2007-01-22 10:57:24 · answer #5 · answered by golferwhoworks 7 · 0⤊ 1⤋
That's a good question!
2016-08-23 15:55:03 · answer #6 · answered by ? 4 · 0⤊ 0⤋
Depends on if his name is on everything as owner.If I were you I would get legal help.Better that than to lose your a**.
2007-01-22 10:57:40 · answer #7 · answered by Jim C 6 · 0⤊ 1⤋
Not really sure
2016-08-09 00:40:21 · answer #8 · answered by ? 3 · 0⤊ 0⤋