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Joe
01-13-2006, 01:00 PM
I have a business that the partnership has gone sour. We our not communicating anymore. I have moved away from the business cause of family reasons but I still own it. My partner is handling all the operation for the business now. Now I WANT OUT of the business. Our assets total is about 200k...the land is still under lease and also some of the equipment through a bank. The past 4 years we both have not paid ourselves anything cause we've reinvested our profits back to the company. The business is still operating today.

I'm not sure what I need to do to get out of the business? What do I say to the bank that gave me the loan to do my business? Do I just go up to them and say I'm not part of this business anymore and they need to take my name off? Do I need to file anything like partnership dissolution or something or tax papers? Also I was wondering now that I want out do my partner have to BUY me out? If so how much do I get out of it??
We both put in the same amount of money and time into the business and under our partnership agreement it's 50/50..

NOT SURE WHAT TO DO PLEASE HELP ANYONE.....THANK YOU...

JOE

bigal
01-26-2006, 05:22 PM
Do you have a shotgun agreement? If you do, offer your partner to buy you out and if he/she doesn't accept you will have to buy your partner out for that price. If you don't have a shotgun agreement and there is no communication your company will go belly up eventually if you let it continue. There may be a legal way of enforcing a shotgun type agreement but I am not sure exactly. The money you profit that went back into the business is something you agreed upon at that time and has no bearing on what happens now.

As for the bank that will depend on what your contract states. Does the company owe the money? Is it incorporated? Was there a personal guarentee on the money? Read through your contract it should say something about that.

If the bank gave the money directly to the company and the company is incorporated you are not personally liable for it, unless it states in the contract "personal guarentee". If the bank gave the money directly to you and you used that to start the business then there may be a personal guarentee on it.

If I was you I would make an offer for your partner to buy you out. If he/she is still running the business they obviosly want to keep it. That is why shotgun agreements are good sometimes. In your situation it would end it quickly, without it, it will get sour so bad that the company will just get hurt and everything will be lost. I have seen that happen before.

ladydia45
04-19-2006, 05:00 PM
what is a shotgun agreement and where might I find some examples of partnership agreement papers? Thank you.

bigal
05-10-2006, 04:39 PM
A shotgun agreement is like this:

Parter A wants out the business. Partner B and Partner A are fighting. Partner A offers X dollars for Partner B to buy out Partner A. B has 30 days to buy out A, if B cant come up with the money or refuses too. A has to buy out B for that amount and B is legally obligated to accept. So there is a resolution within 30 days and no more fighting and damage of the business.

Each agreement can have differences .. it's something you write up extra with a partnership.

oregano
01-21-2014, 12:58 AM
If you don't have a shotgun agreement, or if neither partner can raise the money to buy the other one out, you will have to try to sell your 50% to someone else, or agree with your partner that the entire business be put up for sale. Alternatively, you might agree to close the whole thing down, but if it's running well that would seem like a big waste for both partners, plus you have bank loans to pay back and a lease obligation.

Using a business broker (there are lots of them listed online, or look for one in your city or state) can be a good option for selling a stake in - or all of - your company.

As a side note, 50/50 partnerships can be problematic in many situations, including your current one, simply because there is no majority partner. You both start off with good intentions and seeing more or less eye to eye, then things change and because you're equal partners you find yourselves in a stalemate.

cpefley
01-21-2014, 12:35 PM
I agree with bigal. I would definitely see if your partner would buy you out of your part of the business. If he is still operating it, he must want to keep it. There is no guarantee that you will get 1/2 of the money put into it, considering that you are no longer operating the business, but he is. He might want to take you to court if your relationship is that bad. I would consider finding an attorney if your partner gives you any trouble about wanting out of the business.

If you have any loans or debts, that is an issue as well. Taking your name off of those isn't easy unless he assumes liability of the debt. The loans would have to be paid before you get any money either.

useruseruser
03-23-2014, 01:21 PM
Just tell your partner that you want out. There's no point wasting your time with a business that you want no part of. Separating the business shouldn't be too hard. You are not helping yourself by waiting around and avoiding the inevitable.

stockbroker_s
09-03-2014, 01:59 PM
If the law of your country where do you reside is strong then partnership is not an issue. But anyways, just let me know that if the business is still being operated then what is the turnover of profit and total sales or selling? I can arrange arbitrators with investment for your business.
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MahaKarthi
10-03-2014, 01:43 AM
Directly informing that you want out from business is a right choice. But not at the initial stages give time for yourself because when you disclose the present scenario to the banks and the organization which has granted you loan earlier, they might take immediate and embarrassing actions. Discuss with your partner and then dissolute partnership. I would also suggest that you seal legal counsel.

Malik Suleman
12-11-2015, 10:55 AM
lets settle everything with your partener and then end the deails with him and find any new one.
thats best for you

Malik Suleman
12-11-2015, 10:56 AM
lets settle everything with your partener and then end the deails with him and find any new one.
thats best for you

Encarnaciondavid
03-09-2016, 06:24 AM
just tell your partner what you want actually how you want

scottybiddick@gmail.com
04-22-2016, 08:29 AM
Take time to discuss your company's Vision and Mission with your partners. Look for what energizes and motivates each of you about your business. Give it a purpose and define what the ideal business will look like. Put the joint Vision and Mission in writing and use it as the reference for everything else you do.

WebsiteDoctor
06-14-2016, 11:17 AM
I've been in a similar situation (except there were 3 of us, 33.3% each, one silent partner and 2 active).

Try to figure out what would be a fair valuation of the business as it is right now.

What I would do is look at the issue from their perspective. Your partner probably wants you out of the business too, if you're not contributing. Maybe you both owe each other apologies for various things that have happened in the past, and it's a good idea to start with that, but staying unemotional and professional in your approach.

I would attempt to positively collaborate together to find a solution that works for you both. For example, you could start with two options in mind: 1) buy out immediately, or 2) double down on your time and effort contributions and become an equal partner again trying to grow the business, with a potential buy out in 6/12/18 months. Offer both options and tell them you prefer the buy out immediately, but will work with whatever they prefer, and ask if they see other potential solutions. They might want to offer you a 20% ownership with a guaranteed dividend, for example.

Make it a positive negotiation to find a mutually acceptable solution.

zdkformations
06-22-2017, 07:56 AM
I think you should go to the registrar office you you filed your company name to start as a partner there you have to call you partner and file of the dissolving of the company. Go to the banks and show them the paper that you filed during the start up and get yourself free from the mutual partnership in your business.

hydroliclzsuprxxssssz
09-15-2018, 03:19 AM
what is a shotgun agreement and where might I find some examples of partnership agreement papers? Thank you.

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talkbusiness360
06-03-2019, 11:26 AM
You may decide to close the doors, sell the business, sell your share to the partner, buy him out or any other option that will allow you to move forward with YOUR plan.

ruhiangel
11-12-2019, 03:22 AM
They're not solution-oriented. ...
They have financial ôskeletons in the closet" ...
You have different values. ...
They won't sign a partnership agreement. ...
They don't communicate. ...
Your skills are unequal. ...
You're doing all the work. ...
Buy them out.

Lilykevin86
06-29-2020, 02:49 AM
In the event that you can't settle, or in the event that you do and the accomplice doesn't keep his understanding, you should be set up for an adjustment in business status. You may choose to close the entryways, sell the business, offer your offer to the accomplice, get him out or whatever other choice that will permit you to push ahead with YOUR arrangement.

the man
07-01-2020, 09:47 AM
As we know starting a business is never easy for a normal person. Also finding a business partner (https://greatbusinesscontent.com/how-to-deal-with-a-controlling-business-partner/)
is also not an easy job. So unless you are an expert with that thing you cannot do the things, you need some partner for doing the job.

nadiasonii
05-31-2021, 04:36 AM
Thanks for sharing your problem with us

nadiasonii
07-07-2021, 01:05 AM
let them go