Legal Question in Business Law in California

Re: Part owner of an LLC want to quit and open a competitive business

Probably you can't compete in the same field and geographic area without risking adverse action. Under AZ law even a small percentage owner owes a duty of loyalty to the other members of the LLC. It would be a better idea to do a buyout, to offer to be bought out, or to forfeit your ownership interest if it is really that small. CA attorney should furnish details.

Re: Part owner of an LLC want to quit and open a competitive business

As long as you don't violate the general 'unfair competition' rules, like stealing customers or using their confidential info. You should consult with counsel for specific info and legal advise which can not be given here, and for help in establishing your own corporation or LLC. If you are in SoCal, and serious about doing so, feel free to contact me.

Re: Part owner of an LLC want to quit and open a competitive business

You have the right to set up your own business. The fact that you did not sign a non-compete agreement, however, does not get you completely out of difficulty.

There are potential problems that can still arise when setting up a business in competition with your former employer. You really should have a consultation with an attorney to discuss your options.

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