Legal Question in Business Law in New Jersey

Re: partnership rights

That is a very complex question and it would have been better to answer it at the start of the business. You point out one of the best reasons for ensuring that there is an adequate partnership agreement or operating agreement in place before getting too far down the road.

First, unless there is an agreement to the contrary, there is nothing that gives any owner the right to pay himself a salary. Salaries are for employees. The same individual may be both an owner in some capacity and also an employee, but there is no requirement that this be the case.

Second, there is nothing that says that you have to contribute more money to keep the business afloat.

Your options are mainly dependent on who has control of what. So, consult with a lawyer who can review the whole situation with you and can advise you on your options.

See also: http://info.corbettlaw.net/lawguru.htm