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Irwin Law
Irwin Law, Attorney
Category: Business Law
Satisfied Customers: 7408
Experience:  30+ yrs. representing small business, real estate, probate
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I opened a salon and named my buisness a name that everyone

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I opened a salon and named my buisness a name that everyone knows over 20 years ago. I since then down sized and kept the buisness name, with business license that I use behind the chair now. The catch is that I partnered up with someone on the downsized salon and we're using another name that is quite similar to the name I've had for 20 years that is listed on our business license, and the name was established as a partnership. I've been in business with this person for over 4 years and now I want to go my own way. I've proposed to give her everything including the money that's in the business accounts and the equiptment, and to just give me a 1,000.00. I also want you to know that she is using a different name behind the chair like me. I did tell her that I the partnership name should be dissolved along with the partnership business. She said that she would like to have the partnership name. I told her I don't feel right about it because my name would still be associated with me which is a conflict of interest and customers would be decieved, thinking I'm still associated with the business and that I've been more than generous by letting her have pretty much everything and that we both need to go our own separate ways on a clean slate. I just want to protect my name and reputation as a responsible business person and that she should move on with her own name and I should do the same. Please can you give some feed back and advice?

Hello, and thanks for submitting this question. You are right. When you dissolve the partnership, it is best to discontinue the use of the same business name; however it isn't mandatory, and would not be worth a legal blow up. If you cannot agree to use different names, then if she keeps the current name there should be a "hold harmless" clause in the agreement, where she agrees to be responsible for any claims and to protect you financially if you should become involved because of your past association. Also, you both can file new assumed name certificates (or whatever they are called in your state) with your county recorder, showing who is the person who is actually doing business under that name. It will be public notice that XXXXX XXXXX is now d/b/a the ____Salon, and not you.

I hope that this information is helpful. If you need further information, please just send me a reply asking for clarification. After that, I hope you will enter a positive rating so that I will be credited for assisting you. Also, be sure to verify this information with a local attorney who is familiar with your local laws and procedures. Thanks again for using this service. Your business is appreciated.

Customer: replied 4 years ago.

Ok see but I planned on moving on with my original salon name, but can she still use the partnership name without my permission and if I don't agree? It just doesn't seem fair after I've proposed to give her practically everything and I planned on just writing off what I won't get back from my investment in the business. She wants to get business and be under my umbrella from a name that's closely associated my original name. I also invested in my own website, and for some reason or another she doesn't want a website. I also think that people will think I'm still at that location as well, coming in looking for my services, and that actually happened today, lady that I haven't seen in years drove by and saw that I was at a different location.

I understand the problem. The use of a partnership name is XXXXX XXXXX the agreement of the parties. If you don't agree to her use of it because it involves your name, or carries an association with your name, that has to be decided either by agreement, or taking the matter to court. The latter would require a great deal of money to do, so it is in both of your interests to work it out. Sometimes the matter can be resolved by publishing a notice to the effect that XXXXX XXXXX, and not Susie Jones is now doing business as the _____Salon. If the website is in the old business name, you have to discontinue it and/or forward it to a new website in your new name. There's no perfect solution or hard and fast legal rules on the subject.

I hope that this information is helpful. If you need further information, please just send me a reply asking for clarification. After that, I hope you will enter a positive rating so that I will be credited for assisting you. Also, be sure to verify this information with a local attorney who is familiar with your local laws and procedures. Thanks again for using this service. Your business is appreciated.

Customer: replied 4 years ago.


Thank you so much! I thought that we had to be in agreement when it comes to a matter like this. The partner has no investment or involvement of my website, which is not part of our salon,it's my website that I invested in for behind the chair. She didn't want a website for the salon.

Glad to hear that about the website. It would be a lot of work and expense to change it. If you're okay with my Answer, I would appreciate the rating now. I'll still be around for follow ups.
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