How can I stay and business and withdrawal from LLC?

[dj1michaels]

What is the name of your state (only U.S. law)? Indiana


I formed an LLC partnership with a friend of mine. He and I have complimentary skill sets and education and I had a fantastic idea for a new business. When we formed the business we agreed that we would both actively work to make this business a success. We formed this business with our wives as additional partners with them each owning 26% and the both of us owning 24%.

Since we formed that partnership, my partner took a position with another firm and has contributed 0 time towards this venture. His wife is essentially a stay at home mother with 5 kids and a High School diploma...

I have been busting my proverbial butt to launch this venture and although we have yet to land any clients we are at the point where my efforts will start to pay off. I am the only person contributing and really do not want to give away the fruits of my labor when my "partner" is doing nothing.

How can I get out of this venture with the least amount of pain? I fully intend on staying in the business I am in and making it grow. I just don't want to give it away!!!!

 

[Andy0192]

Does your partnership have a buy/sell agreement in place? Have you offered to buy out your partner?

When we formed the business we agreed that we would both actively work to make this business a success.

Was your agreement in writing?

 

[dj1michaels]

No buy / sell agreement

Unfortunately, there is no buy / sell agreement. The agreement for equal contribution was verbal. This business has 0 value if I pull the plug as I am the only one who can make it work....

 

[Andy0192]

So have you talked to your partner about purchasing his share of the business?

If he isn't interested in the business at all, you can probably buy him out cheaply enough. If you both see future potential & he's not willing to sell out, you're probably going to need an attorney.