I run a barbershop with a partner in a 50/50 LLC business,?

Question

can he sell his half of the business wihtout my permission or do I have first right of refusal. Or does the buisness just dissolve?

Thanks in advance !

Answer 1

Yes, he has the right to sell his half of the commonly acquired assets--and no, he doesn't have to give you the right of first refusal-- but at that point a new partnership LLC will have to be submitted .unless you have it specified in a contract that you have first refusal .A lot has to do with whom owns or leases the location, the equipment. and the name on the sign. The total partnership may just be for your skills, a box of used barber equipment, a chair, and half of a sign that reads "Ray's and Jay's".Before You get any further you need to get a contract between you and your partner. Also list any assets that you purchased that were common between you and that you own as a individual. Your greatest assets are your skills, location, name, and clientele--remember that.

Answer 2

If you didn't cover this possibility in your operating agreement then you two are just going to have to duke it out.

And probably end up in court, both making lawyers rich and you poor.

Try to sit down and come to terms with this. Next time make sure you address the dissolution of a partnership before you form the partnership.

Answer 3

nothing will change just owners it is only a thing of honor that u get first chance at doing it but the main thing is who owns the property who's name is that in if its n your name or his then it isn't actually 50 percent if the 50 percent like a lot of business is a thing of honor not on paper then who owns the stuff on paper owns the business

Answer 4

you own 50, he owns 50, no decision nor selling can take place without either of you two signing or agreeing to anything.

Answer 5

It depends on how you both took ownership of the business. Depending on how you took title to the company, he may be entitled to sell his Interest (rights) in the property. This is usually the case unless specifically stated otherwise. Check the Title/Deed of the property. It should say something like "John Doe and Joe Doe AS TENANTS IN COMMON" or "John Doe and Joe Doe AS JOINT TENANTS"

That should spell out how you took title to the business. Here is a brief explanation of each type:

There are a variety of forms of ownership of property. The more common forms of ownership include:

(1) Joint Tenancy: property owned by two or more people at the same time in equal shares; typically referred to as the four unities (unity of time, title, interest and possession vesting in each joint tenant). Each joint tenant has an undivided right to possess the whole property and a proportionate right of equal ownership interest. When one joint tenant dies, his/her interest automatically vests in the surviving joint tenant(s) by operation of law. Words in the deed such as "John and Mary, as joint tenants with right of survivorship and not as tenants in common" establishes title in joint tenancy. Not all the states allow this form of property ownership.

(2) Tenancy in the Entirety: some states have a special form of joint tenancy when the joint tenants are husband and wife -- with each owning one-half. Neither spouse can sell the property without the consent of the other. Words in the deed such as "John and Mary, husband and wife as tenancy in the entirety" establishes title in tenancy by the entireties.

(3) Sole Ownership: owned entirely by one person. Words in the deed such as "John, a single man" establishes title as sole ownership.

(4) Tenants in Common: property owned by two or more persons at the same time. The proportionate interests and right to possess and enjoy the property between the tenants in common do not have to be equal. Upon death, the decedent' s interest passes to his/her heirs named in the will who then become new tenants in common with the surviving tenants in common. Words in the deed such as "Peter, Paul, John and Mary as tenants in common" establishes tenancy in common.

(5) Community Property: only in states that recognize community property, a special form of joint tenancy between husband and wife, each owning one-half. Upon death, the decedent's interest passes in a manner similar to tenants in common. Words in the deed such as "John and Mary, husband and wife as community property" establishes community property ownership.