Legal Question in Business Law in Hawaii

My brother and I own an LLC business in Hawaii. We started the company with another partner. Our company bought another business that has a storefront. We have had many problems with the partner we once took on. So now, my brother and I run the one business and the partner runs the other business with the store front. We have been both doing our business's separately for about a year now all the while, on paper, we are all still partners. My brother and I would like to separate and have our own business without any attachment to the other business. Our initial LLC owns the new business and thats how it is on paper. We really want to separate but the partner who runs the storefront uses our LLC name to buy his product. He worries about changing the name over because it might hurt his ability to buy product so has not signed our "withdrawing member" documents that we have approached him with. He has a lease coming up on his space and we do not want to be tied into it for any longer. How do we separate from this partner? Is there a way we can have our name and LLC and he can have his with him keeping his ability to buy product under his own name? Or, do we sign ourselves out of both businesses and get a new LLC for ourselves?

Thanks for your help and time,


Asked on 11/07/10, 1:26 pm

1 Answer from Attorneys

Kevin B. Murphy Franchise Foundations, APC

As a franchise attorney I can tell you this is not a simple question to answer. An analysis of your LLC's operating agreement is necessary, as well as researching and considering both legal and business solutions to the problem. Consult with a good business or franchise attorney in your area for specific advice.

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

Franchise Attorney

Franchise Foundations APC

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Answered on 11/12/10, 4:37 pm

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