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TexLaw
TexLaw, Attorney
Category: Business Law
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Experience:  Internationational Commercial Attorney
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ZDN Law, Thanks for your help with my previous question.

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ZDN Law,

Thanks for your help with my previous question. I have a follow-up.

If my business partner happens to be using another company name to bring in income for the exact same service that our company provides, is this in anyway illegal? For example, let's one of our customers decided to "fire" our company and then hire a new company run by my business partner for the same service.

Thanks!
You are welcome.

This is in fact still illegal. A partner has a duty to not compete with his other partners. Starting up a competing business breaches this duty. He should bring the business to the partnership. He is not shielded by the fact that he is doing this through a corporation.
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