is there anyway that i can demote her as such and so she no longer is a business partner as she doesnt do any business management, just works the same as any other employee we have. we have a 75/25 split (i have the larger share) although we stated on our self assess form that we are 50/50 as we dont have a partnership agreement as such. can i change this self assessment to what it should be?
2007-08-18 10:01:52 · 6 answers · asked by lisa h 1 in Business & Finance ➔ Small Business
offer to sell your interest in the business to her.
if she turns you down, then offer to buy her interest from her.
if she turns that down also, dissolve the business and walk away. yes, you'll have to split the profits, likely 50/50 ... and it beats putting up with deadweight for years.
[She can not force you to keep on with the business if you don't want to ... it is a partnership, not slavery.]
GL
2007-08-18 10:11:30 · answer #1 · answered by Spock (rhp) 7 · 0⤊ 0⤋
My advice is to assemble all of the documents you have on the business and see a lawyer who practices in the area of corporations immediately. I can assure you this will not be settled without a lawsuit. What you need to prove generally is three things. 1. That the Partnership existed legally. 2. That the building was Partnership property. 3. What happens to the deceased Partner's share. If you can't prove this, the default is that the deceased Partner's heirs get their share. The name on the deed is not the beginning and end, unless you present no evidence to refute it. What will likely be the most persuasive is where the purchase money came from. I suspect that since this is commercial property that you put a minimum of 20% down. Where'd that come from? If you can produce a Partnership check, or at least a personal check for half, you should be good. If the deceased Partner wrote the check, you may be screwed.
2016-05-22 05:18:59 · answer #2 · answered by ? 3 · 0⤊ 0⤋
I took a somewhat different approach with a similar problem. The last partner I had I was friends with first (I just don't learn). Instead of dissolving the partnership I went to my partner and explained that I felt I was getting the short end of this and what I was expecting in a partner. If you do this she will either step up or more than likely explain that she doesn't want to do it and from there you can discuss dissolving the partnership. Very Important that you don't bring up dropping her as a partner until afterward the heart to heart cause naturally if you bring it up that is all she will hear. Good Luck
2007-08-18 10:20:36 · answer #3 · answered by sillyshac 3 · 0⤊ 0⤋
At this point you have made a written acknowledgment of the the terms of your arrangements and in any Court it would be binding.
The thing to do now is find an attorney and formalize your arrangement, and fast.
The fact that you don't agree with his methods for contribution to the venture you started has no bearing, because no matter what you think, he in doubt is contributing nonetheless, and entitled to the stated amounts of equity ownership.
Be mindful not to insist on a different equity arrangement, or you may find you have a even bigger problem if he should decide to contest your proposal with his own attorney.
Also, never underestimate your associate, you may regret it later.
2007-08-18 10:50:55 · answer #4 · answered by James F 2 · 0⤊ 0⤋
Do you have a partnership agreement? Is there a written contract? If not, just talk to your partner. If there is a written agreement, what ownership percentages does it show? What is that self-assessment form you mentioned?
2007-08-18 10:12:36 · answer #5 · answered by hottotrot1_usa 7 · 0⤊ 0⤋
Maybe she is not used to be a manager position. But talk to her to find out what she really wants to do. Maybe she can be a silent partner, and work for you. Find out what you want her to do before you talk to her.
2007-08-18 10:19:46 · answer #6 · answered by paobay 4 · 0⤊ 0⤋