Legal Question in Business Law in Texas

Business partnership

I satrted a party planning business with a partner. We filed for a DBA as 50/50 partners. I took on the majority of the expenses in building the business. Our business expenses are $8,000. Our business has made $5,000. After 8 months my partner wants out of the business. I want to know what are my financial responsibilties to her in this situation?


Asked on 8/17/08, 9:11 am

1 Answer from Attorneys
David Leon David L. Leon, P.C.

Re: Business partnership

If you have no written agreement, then you have a general partnership, which is the worst thing to happen in Texas. If this is an amicable split, then you can agree to whatever terms you want for the break up. In a general partnership each of you is fully liable for the debts of the business: in this case, $3,000. Is the business name and number worth anything? Do you have any goodwill of the business? If the partner just wants out, have a lawyer prepare a dissolution agreement in which you give the ex a few dollars, and in exchange, you keep the business name, number and goodwill.

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Answered on 8/17/08, 10:36 am


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