Business Credit Cards

[Eagles29]

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

I started a company and then took on a partner whom I gave a 30% share to. We ended our partnership and I am now full owner again.

My former partner is now threatening legal action because he says that I used my business credit card for personal use on several occasions. I would like clarification on whether or not I can use a business credit card with my name on it for personal use. The funds would be paid back from my personal accounts not from the business accounts.

Also, we had agreed not to spend any money from the business without discussing it first and I found out that he spent $20,000 with no notice to me and purchased items for my business from one of his businesses ( printed material in excess of $11,000 from a printing company he owns).

I am not sure how to proceed with all of this.

 

[swalsh411]

It's not his business anymore. I wouldn't worry about. By accepting your buy-out he agreed to sever his legal ties to the entitity. I wouldn't even discuss the matter with him other than remind him he is no longer a part of the business. and certainly don't provide any records. He has no right to them.

 

[Eagles29]

The card was used while we were partners, and he believes that by using them for personal use I committed felony theft. I owned 70% of the business at the time and never drew a salary as we were a young start up. He has been sending threatening emails and texts non stop each getting a bit more erratic than the one before. I have ignored them for the most part hoping that he would move on but it has gotten out of hand. I don't want to go after him with legal action unless I have to.

I guess since I owned a majority of the company and I used a credit card with my name on it for personal use from a bank account with both our names on it, that it was in no way illegal.

 

[HomeGuru]

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

I started a company and then took on a partner whom I gave a 30% share to. We ended our partnership and I am now full owner again.

My former partner is now threatening legal action because he says that I used my business credit card for personal use on several occasions. I would like clarification on whether or not I can use a business credit card with my name on it for personal use. The funds would be paid back from my personal accounts not from the business accounts.

Also, we had agreed not to spend any money from the business without discussing it first and I found out that he spent $20,000 with no notice to me and purchased items for my business from one of his businesses ( printed material in excess of $11,000 from a printing company he owns).

I am not sure how to proceed with all of this.

**A: very poor financial practice. It appears both of you are guilty of the same poor practice.

 

[LdiJ]

The card was used while we were partners, and he believes that by using them for personal use I committed felony theft. I owned 70% of the business at the time and never drew a salary as we were a young start up. He has been sending threatening emails and texts non stop each getting a bit more erratic than the one before. I have ignored them for the most part hoping that he would move on but it has gotten out of hand. I don't want to go after him with legal action unless I have to.

I guess since I owned a majority of the company and I used a credit card with my name on it for personal use from a bank account with both our names on it, that it was in no way illegal.

It was not illegal as long as you personally repaid the funds. It was not necessarily illegal even if you didn't. You need to keep your bookkeeping clear.

 

[davew128]

It was not illegal as long as you personally repaid the funds. It was not necessarily illegal even if you didn't. You need to keep your bookkeeping clear.

Assuming this was in fact a partnership, it was most definitely not "illegal".