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My friend and I opened a barber shop but it's in my name alone. Does my friend have any say?

I need legal advice. My friend and I decided to open up a barber shop. I put all the money and investment into it. The name and business are solely in my name. Does my friend have any say?

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Michel, you may have put up all the funding for the business but your friend may be contributing some sweat-equity, which has its own particular value. I would suggest that you first sit down with your friend and draw up a rough shareholder or partnership agreement where you specify what each individual is responsible for, the percentage of ownership, compensation, benefits, buy/sell options, and other critical partnership elements that may be important to you. You then need to formalize this in a contract prepared by a lawyer. Loose business relationships between friends often lead to both serious business issues and breakup of friendships.

1

No! Unless there is some other agreement in writing between the two of you.

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