What are my options for restructuring a 50/50 partnership when one partner is moving?
I currently have an LLC (an in-home pet care company) that I originally started on my own, but I brought in a 50% partner when we actually registered the business as an LLC (as a general partnership). Unfortunately, we did not ever put together a partnership agreement. My business partner is now moving to another state, and is expecting to still take 50% of profits. I don’t personally agree to this because she already hasn’t been contributing 50% of the work for the business and moving would mean she wouldn’t be contributing at all. We have both invested the same amount of money, though I myself have invested significantly more time and effort. I actually bring in the most amount of money out working bookings than her and our employees combined. I’m finding it hard to justify giving up 50% of my earnings without having any help with any aspect of the business. Unfortunately, I made a stupid, rookie mistake and we never had a partnership agreement. What are my options? Is it best to just dissolve the LLC and start fresh? I know that she has been talking to our lawyer behind my back, and I’m wondering if I should be doing the same.
Do you have a partnership agreement? This should be stated in there. I am also in a partnership and we have situations like this covered in that.
If you do not have any sort of partnership agreement, and if it were me, I would definitely consult a lawyer and see what your options are and what she's legally allowed to do.