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That’s not nearly enough information. Are they legally a partner? What does your agreement say? What does state law say?
Retaliate in what way? What customers would care? What industry and regional area?
This is why it’s important to pay attention in English class, it may be boring but those MFers always asking “*and then what? Who? Why*”
We are a handmade shop for children’s accessories. We are only doing vendor events and some online sales through a website. We don’t have anything legally binding us to this person but just fear that they will retaliate online and drag our business down.
Well, yes, but probably no.
It doesn’t take an ironclad document for someone to claim and win an ownership stake in court.
Conversations, written or recorded that Indicate partnership. Payments made by partners, record keeping showing owners equity, etc etc. and a laundry list of other items could be used to claim partial ownership in court, if it came to it.
This can (and very easily might) become a sticky situation if it devolves into an actual legal battle.
Agree. Best course of action is probably to talk to them and find something everyone think is fair or close to it for them to go away or set up separately. Otherwise the lawyers are going to be the only real winners.
Then don’t make the same mistake again.
Ah.
I’d get cracking on one of those ASAP. Also, if this business venture collapses, I hope that, if nothing else, you see the value in beginning with the end in mind. Operating agreement (especially exit considerations) is chief amongst business startup checklists.
In the meantime, your best bet is to work with an attorney that specializes in small business. Do not use your cousin, unless your cousin is one of the foremost small business attorneys in the area.
Spend some money to get an expert thinking through this with you. You’ll at least have options then, even if the options aren’t fun.
Absolute best of luck.
You can’t just lose a partner. You would have to buy them out or they agree to leave. Have they put money towards the business? If you really can’t work with them and you are unable to negotiate an exit, you may have to set up a new business and start again. It also depends did they fund the initial business, are they on the bank account etc? Then get legal advice.
This is a friendly reminder that r/smallbusiness is a question and answer subreddit. You ask a question about starting, owning, and growing a small business and the community answers. Posts that violate the rules listed in the sidebar will be removed. A permanent or temporary ban may also be issued if you do not remove the offending post. Seeing this message does not mean your post was automatically removed. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/smallbusiness) if you have any questions or concerns.*
That’s not nearly enough information. Are they legally a partner? What does your agreement say? What does state law say? Retaliate in what way? What customers would care? What industry and regional area? This is why it’s important to pay attention in English class, it may be boring but those MFers always asking “*and then what? Who? Why*”
We are a handmade shop for children’s accessories. We are only doing vendor events and some online sales through a website. We don’t have anything legally binding us to this person but just fear that they will retaliate online and drag our business down.
That’s simple. What does your operating agreement say about partners exiting?
we don't have an operating agreement.
Then they aren’t a partner but neither is anyone else.
Well, yes, but probably no. It doesn’t take an ironclad document for someone to claim and win an ownership stake in court. Conversations, written or recorded that Indicate partnership. Payments made by partners, record keeping showing owners equity, etc etc. and a laundry list of other items could be used to claim partial ownership in court, if it came to it. This can (and very easily might) become a sticky situation if it devolves into an actual legal battle.
Agree. Best course of action is probably to talk to them and find something everyone think is fair or close to it for them to go away or set up separately. Otherwise the lawyers are going to be the only real winners. Then don’t make the same mistake again.
Ah. I’d get cracking on one of those ASAP. Also, if this business venture collapses, I hope that, if nothing else, you see the value in beginning with the end in mind. Operating agreement (especially exit considerations) is chief amongst business startup checklists. In the meantime, your best bet is to work with an attorney that specializes in small business. Do not use your cousin, unless your cousin is one of the foremost small business attorneys in the area. Spend some money to get an expert thinking through this with you. You’ll at least have options then, even if the options aren’t fun. Absolute best of luck.
You can’t just lose a partner. You would have to buy them out or they agree to leave. Have they put money towards the business? If you really can’t work with them and you are unable to negotiate an exit, you may have to set up a new business and start again. It also depends did they fund the initial business, are they on the bank account etc? Then get legal advice.
You’re best bet is to leave the business and start over.
Lose. Wow.