Wesley Deaton, a North Carolina Business Lawyer, wrote two good posts on his Business Law Blog on buying out a business partner. He recommends the following:
1. Get mutual releases
2. Get a release of company liabilities
3. Put the proper corporate filings into place
4. Plan ahead for a possible buy-out
Read: Buying out a Business Partner, Part 1
Buying out a Business Partner, Part 2
**This post is for informational purposes only and does not constitute legal advice**
i own 90 % of the llc i created around 1.5 years ago is there any way i can buy out my business partner he has 10 % that I gave him when we starterd. we are struggling and i put in every penny and all the work.
Posted by: Brenton | June 30, 2010 at 03:02 PM
Thanks for sharing this info post.
Posted by: Business For Sale | September 25, 2009 at 06:54 AM
If you want your partner to buy out, the best way is to get a valuation of your business done and ask him to pay half the value. Worst case give him a discount for lack of control, which generally ranges from 20% to 30%.
Posted by: your friend | July 03, 2009 at 06:47 PM
I have a 50/50 partnership. We have been in business for 2 years. We do not have a formal signed partnership agreement. We are currently unhappy with partnership. He does majority of sales, I do all the administrative, running company. He feels entitled cause he makes most sales. I want him to buy me out. Is it fair to ask for my original business start up cost and 2 years compensation for management. If he disagrees can I ask to disolve company and he can start over, new name, and all.
Posted by: Sally | March 05, 2009 at 10:12 PM