how do I get rid of my business partner if needed, or what happens if they walk out?

Question

everything is in my name and it is registered as a sole proprietor, she put up10,000 cash I took out a loan for 15,000 the business is breaking even, we have both put every cent we make towards the business (a small hair salon) she is irresponsible and childish and is going threw some mental difficulties the money was put up for her by a boyfriend and does not want her to pay it back, she is not on the book as a partner yet she needs to sort out some stuff first, I am having a hard time with her If I want to what formula could I use to by her out if she leaves am I morally resposible to do anything she is a friend I want to be fair, legely there is nothing in her name or prof that she has any stake in the business I want to be ethically fair. it is less than a year, I can hire someone else to do her work.

Answer 1

If you are doing business as a sole proprietor, you do not have a partner. The money she put in to help get the business going could be considered a loan to you. To get rid of her, you would pay the loan off. To be fair to a friend, pay her a generous amount of interest to cover all the work she has done for you. Don't count on her being a friend anymore though, no matter how generous you are.

Answer 2

If you are listed as a sole proprieter, then the business is your, legally. She has no legal in any of the business functions. Legally, you don't need to do anything except tell her to hit the road, as if you were firing an employee.
However, morally, you are obligated to paying her back for her monetary input of the beginning capital, but not any more.
It also depends on any documents you signed when she gave you the money.

Answer 3

this is a tought situation..but my advice is..that you try to fix her somehow and make her work with u like she use to before..or just simply ask your friend..to leave..and pay her right of shares..datz the most u can do..