I opened a business with my friend

Sharpcharm
Sharpcharm

I opened a business with my friend. It was supposed to be 50/50 and he had to put his grandfather on the business so that he could cosign some equipment loans.

Things went south, he offered to buy me out. I agreed, then he kept lowering his buyout until now, it's half what it was. I think my only leverage in this is I can sue him, but I don't have the money for legal fees.

Then I looked today, and he has removed me from the corporation. Without my consent. How can he even do that?

CouchChiller
CouchChiller

you are kinda fucked. get a lawyer asap, don't waste time on Veeky Forums. if you think you can't afford his fees, the truth is you can't afford not to.

Dreamworx
Dreamworx

removed me from the corporation
what do you mean? do you own 50% of the stock? do you have stock certificates or an official stock registry? is your company even worth anything?

farquit
farquit

The company should be worth at least 150k, but that's just a rough estimate. It does 10,000 in gross revenue a month, but it isn't profitable yet. But if we were to sell, we'd profit. Me and my business partner went down to 25% each and his grandfather went up to 50% so he had the majority in the company for cosigning reasons. It's not like I want 25% of the business, I just want my 20k back. And he's only offering me 10

haveahappyday
haveahappyday

He's also threatening me to sue me for embezzlement because I used the business card for a personal expense in an emergency. My wife was in the ER and we didn't have the money for the copay.

askme
askme

you didn't answer my question. how did he "remove you from the corporation?"

do you have a a legally binding buyout offer from him? if not, i'm not sure why you think he's obligated to cash you out. when you invested in a private business, you knew you were buying into an illiquid investment. unless you have something in your articles of incorporation or shareholders agreement that allows you to withdraw and receive your proportionate share of the company value, i think you're stuck unless you can find another buyer.

well that was stupid of you. that is stealing from the company.

idontknow
idontknow

well that was stupid of you. that is stealing from the company.
Not true if it is a partnership. You can make a draw any time. Sure it should be a draw not a charge for medical expenses, but I doubt any court would give you much trouble for this.

You have to take them to court OP. You are entitled to part of the business.

Emberburn
Emberburn

op said its a corporation, not a partnership.

Spamalot
Spamalot

S Corp but I owned 25%

He did an annual report online, naming only his name on the business.

LuckyDusty
LuckyDusty

Did he ever tell you not to use the business card? Your wife is an integral part of your ability to run the business from your perspective.

If I was your attorney I would go to court to freeze the corporate bank account and I would threaten to being suit against him and grandpa.

I would ask for a list of all his personal assets and grandpa's as well as their homeowners insurance contact.

After they got through shitting they would settle.

Hey. I did something nice.

AwesomeTucker
AwesomeTucker

How did things go south. Be honest.

Need_TLC
Need_TLC

I had intercourse with his gradfather who then confessed the whole ordeal on his deathbed and left all his shares to his grandson.

Grandma isn't doing so hot and the rest of his family won't speak to me either

cum2soon
cum2soon

Sounds like Gramps is fucking you in the ass once more from the afterlife.

Bidwell
Bidwell

What

Inmate
Inmate

It's lawyer time OP.

Sorry to say I told you so, but you NEVER EVER EVER EVER EVER

EVER

Start a business in a divided fashion. You have an owner and employees. And if he is owner and you are employee, then fine. And if you are owner and he is employee, then fine.

You don't start a 50/50 business. You need a hierarchy. Just way it has always been.

hairygrape
hairygrape

In ancient Rome they had two consuls

Dictatorships and kings are evil, user.

TalkBomber
TalkBomber

Yeah, and look how that fucking turned out, literally all of the time.

WebTool
WebTool

are you really OP?

holy shit LOL

StonedTime
StonedTime

Lol look at the ids...

New_Cliche
New_Cliche

I know, but IP, tablet, 4g, laptop, home wifi..

you see the factors? it happens to me.

Nojokur
Nojokur

The one ship that never sails? A partnership.

Soft_member
Soft_member

You say you own 25% of the company. How do you own it? Do you have stock registries you can prove to a court?

takes2long
takes2long

when non business majors post on Veeky Forums

BinaryMan
BinaryMan

If you do not have documents showing you own a share of the company, then you do not own a share of the company.

There's very little you can do if you were stupid enough to start a business with a friend, without getting the proper documents written up.

The end.

GoogleCat
GoogleCat

Well, it is kinda true. Avoid 50/50 - try going 51/49 if there are only 2 partners. Disagreements are bound to happen and when it happens to a business split 50/50 the business is torn apart.

Disable AdBlock to view this page

Disable AdBlock to view this page

Confirm your age

This website may contain content of an adult nature. If you are under the age of 18, if such content offends you or if it is illegal to view such content in your community, please EXIT.

Enter Exit

About Privacy

We use cookies to personalize content and ads, to provide social media features and to analyze our traffic. We also share information about your use of our site with our advertising and analytics partners.

Accept Exit