Partnership investments.

[nicholv]

Texas.

My fiancee and I started an S corp together and under it, we started two businesses.

He invested about $15,000 in one company and none in the other.
In both companies, I developed the product, designed the labeling, I did marketing, advertising and build a full blown ecommerce business and website. If I would have charged one of my clients {I am a full service ad agency too on my own}, I would have charged about $25,000 to $30,000 to do all of this company start up. He never worked in either company and I did all of this for BOTH companies. He did invest that money, but never lifted a finger for work. I have resigned now and he wants to sue me for what he invested in the first company. It is no longer in business now. Please advise if he can sue me. I was told by my accountant that my contractual labor and work and intellectual property is also an investment. Thank you.

 

[Dandy Don]

Is there a partnership agreement? If not, why isn't there one? Did you consult with a business law attorney before you started the business so that your financial interests could be protected?

You need to be discussing this with a business law attorney.

 

[nicholv]

Partnership

There is not an agreement as we ignorantly trusted one another because we were getting married.

 

[davew128]

Is there a partnership agreement? If not, why isn't there one? Did you consult with a business law attorney before you started the business so that your financial interests could be protected?

You need to be discussing this with a business law attorney.

A corporation would have a partnership agreement.....why?

 

[JoshDom1898]

Totally agree Dave, titles should give you a clue...OP. What you need to look for are the following documents:

1. the S-Corporation's By-Laws;
2. Any Shareholder agreements which might have been executed; and
3. Any employment contracts you may have governing your rights to any work product you created, including client lists, to determine whether the rights to these belong to you, or the company.

If you have nothing at all in writing, I would consult an business/corporate attorney asap.