Legal Question in Business Law in Arizona

I started a business with the help of another person, a friend, but never signed any documents making us partners in any way. He put up about $5K to get the business started. I put in $0 but have spent more than a year full time building the business. The LLC is in my name the bank account is in my name I control the website, 800 number, etc. etc. All is in my name. At the time I tried to get him to sign agreements and to put him on the bank account but I believe he wanted to hide any involvement from his soon to be ex wife and other financial obligations he had. At first he helped somewhat but he is not focused on the business and has become a liability. He is unable to do anymore for the company do to his limited experience and business knowledge.

What options do I have to get rid of him?


Asked on 5/27/10, 11:18 pm

2 Answers from Attorneys

Kevin B. Murphy Franchise Foundations, APC

Any attorney will tell you a partnership does not necessarily need to be in writing. Many are not. Your best course of action is communication - talk to him about things, get his feelings about him stepping out and you taking over - including repayment of the $5k he invested. If he's amenable, then you will need to consult with an attorney in your area to draw up the necessary paperwork. If not, you will still need to consult an attorney.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

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Answered on 5/28/10, 8:08 am
Donald W. Hudspeth The Law Offices of Donald W. Hudspeth, P.C.

You have very favorable facts on your side. Now you need to get advice on how to approach it from the other side in order to understand what might go wrong and how to make the situation as favorable as possible. Pre-divorce planning can save time and effort and negative emotion later. While we canít guarantee a business divorce will go smoothly, we can help you pre-plan to handle most contingencies.

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Answered on 6/02/10, 1:45 pm


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