If you are starting or are already in a family-owned business, it is very important to define all aspects of the partnership. Be sure to clearly define the distribution of ownership and specify how partners are compensated.
Is your business partner in charge of the books? What if he doesn’t pay the taxes? You bear equal responsibility whether you know what’s going on or not.
What if you are already in a 50/50 partnership and things are getting rough? Relax. Your partnership can be fixed.
Dealing with business partnership issues is very delicate and personal work. In a 50/50 partnership, I have the interests of many parties to protect. We don’t want to disrupt the business, spark a bigger dispute, or cause more stress. Unlike an attorney, I function on the side of the business to help both parties agree on specific solutions.
If there is no Partnership Agreement in place, the process for getting out of a business partnership is fairly open. That also means that the price and terms are fully negotiable.
Is it legal for your partner to lock you out of your business? Maybe. But, even if legally possible, they had better have a very good reason or things could go very wrong for them.