Is it legal to get rid of a business partner?

Suing your business partner to get rid of him should be a last resort…and only if there are legal grounds for doing so. In addition to being costly in time and money, litigation as a means to dump a partner often drives an otherwise thriving business into bankruptcy. In short, the benefits are rarely worth the costs incurred.

How can I get rid of a disagreeable business partner?

The downside is that a disagreeable outsider will remain inside the business. It’s possible to control the risk with a shareholders’ agreement. For example, the departing founder could agree to vote with the remaining partners on director elections and major transactions.

Can a business partner take control of your business?

Fighting for the win doesn’t usually have a happy ending. If your partner has a greater interest in the business, she can take control. If you are an equal partner and end up in court, most often the court will simply order you to work it out or dissolve the partnership.

What happens when your business partner wants to break up?

If the breakup results in the dissolution of the partnership, the partnership continues for a limited time to wind up the business.

Can a partnership be dissolved without buying out the other person?

Provided you had a well-written partnership agreement in the first place, you may be able to simply dissolve the partnership. This would allow you to go your separate ways as partners without any one person needing to buy out the other person.

When to hire an attorney to dissolve a partnership?

If you have the resources, both parties should hire an attorney the minute it’s decided that it’s needed to dissolve a partnership. This allows both parties to negotiate at arms length, without being slowed down by partner emotions. Anytime a relationship is ending, there is a natural tension caused by a lack of trust.