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Informal partnership agreement/payroll

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Junior Member
What is the name of your state?California :confused:

Belizebreeze might know the answer to this one, or anyone else who can help.

Yesterday BB I posted to the Landlord/Tenant issue. Here is the other part.

My cousin from Oklahoma who moved here May 29th 2005, had originally come here to partner with me in running a small General Store/Cafe/Bar on the lease she is now living on.

She is now threatening law suits against me, for what I don't know yet. I am trying to wrack my brain to think of anything I might not have done incorrectly or anything she might be able to sue me over.

There has been no formal partnership agreement signed, we just didn't have the time to get it done yet. I do have the lease of the store/cafe and its rental property in my own name. I had her utilities in my name also, I have since taken them out of my name.

Only her partner was on the payroll so they could have some kind of income to live on. I have yet to get even a penney from the business. It was agreed she would be paid 6.25 per hour on a 40 hour work week, plus her daily tips.The minimum wage in caliornia is 6.75 per hour. However, the wage was agreed upon as the idea was to get the store up and running as partners. She did work longer hours to cover for my cousin who was allways ill, although I never asked her or expected it of her. Again, the idea was to do what's best for the business together. Now it has been 3 months since we started the business and disagreements as to how it should be run and where the money is put back into it. Let me also state that I am the only one who put any money whatsoever into the start up costs. Approx, 15,000. They were living rent free and utility free. I paid for there horses vet bill, hay, etc. I did all I could to help them. They are just unhappy because the store is not making as much money as they anticipated. They are not giving it enough time to get it going to be prosperous. I did not anticipate this upheaval from them. I am sad and hurt. What should I look out for legally? Have I done anything wrong? Please advise me. Thank you.

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