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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Business Law
Satisfied Customers: 1611
Experience:  Run my own successful business/contract law practice.
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Topic is dissolution of business partnership. My partner is

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Topic is dissolution of business partnership. My partner is leaving our company. We are the sole 50/50 owners. Coming into the business I took on all credit and loans because her credit was poor and owed a lot of student loans. The only thing in both of our names is the business bank account. The company has been open for almost 3 years and we haven't really paid ourselves much besides bonuses around Christmas since our sales spike around the holidays. She has never shown any interest in the business side however decided a few weeks back to take a look at our bank account and became upset when she saw that I paid my health insurance a few times with the account. I didn't think much of it as since I was the only one who has a financial stake in the company and using it to pay my health insurance has been a tax right off. She didn't agree. She is now demanding a lump some of money to get out and has been cordial so far. I have decided to keep the company for myself and keep all debt since it's mine anyway. My question is if we can't come up with a agreement and she decides to demand to see credit card statements all of which are solely in my name do I legally have to show them. They are recurring and used to pay for business purchases and bills. I also use them for personal purchases as well.
Submitted: 7 months ago.
Category: Business Law
Expert:  Legalease replied 7 months ago.

Hello there --


Do the two of you actually have a written operating agreement (you would have put this together when you formed the LLC). While a written operating agreement is not required by state business laws when forming an LLC (you can legally do everything on a handshake) it is usually better to have one because they contain provisions regarding what you do in the event that one partner wants to leave the business, or if the business fails what you should do in winding down the business.


Paying a few health insurance premiums out of a business that you largely financed is not in any way illegal nor does it give her any grounds to sue you for that amount.



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