Business Partnership Advisor
Together, we can fix your business and partnership problems
Chris Reich, Business Luminary
Can Your Business Partner Take You Off The Bank Accounts?
You just found out that your partner took you off of the business bank account! Can he do that? It depends…
Your Business Partner Can Remove You From the Business Bank Account
That doesn’t seem right. If two people are equal partners on a business account how can you be removed? Why would the bank do that on his word without talking with you? Because there are two ways for you to be on that account. If it is a joint account, he can’t remove you without a court order of some kind. If you are an authorized user on the account, and your partner is the account holder representing the business, you can be removed.
If you are not a joint account holder, you need to change that or open a new bank account for your partnership.
Chris Reich, Business Partnership Advice
Get a Joint Account
If you are in a business partnership, call your bank and find out if you have a joint account. If you are “on” the account but it’s not a joint account, change it. I can’t stress how important this is.
If you are a “signer” on the account, that means you are an authorized user. You can add, or take money. Your partner, however, has the ability to remove you from the account. Things may be great with your partnership today, but that could be very different tomorrow.
Are You Setting Up a New Partnership? Make Sure You Open a Joint Account.
“Please find out if you are an authorized signer on your bank account or if it is a joint account. Trouble with your partnership? Contact me. It’s what I do. Chris Reich”
When business partnerships go bad, very often someone wants out. That starts one of two possible processes. The business enters Wind Down and begins the process of closing or the partners start discussing a Buyout.
When the business partnership breaks down, the darker sides of the personalities come through. A dominant partner turns into a bully. A person who does not do well with conflict will withdraw. As the bully gets more aggressive, the pacifist withdraws further. Eventually, the bully gets so angry they are ready to lock the other partner out. The pacifist quits coming in. The next blowout is over money. The course is as logically predictable as what will happen to your car if you hit the highway with no oil in the engine. It will get louder and louder until the engine seizes.
I recommend that partners talk through a specific issue and then draft an agreement (called a resolution) that sets a policy. You can keep this in a binder to serve as amendments (or foundation) to your Partnership Agreement. In this post I’ll explain how to talk about things that bug you with your partner and how to draft a binding resolution to fix the problems.