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Richard, Attorney
Category: Legal
Satisfied Customers: 55455
Experience:  Attorney with 29 years of experience.
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I am partners 49-50% on a handshake in a car lot I started.

Customer Question

I am partners 49-50% on a handshake in a car lot I started. He has funded the business and I have done all the work from day 1 working 7 days a week most of the time. My partner hasn't produced a contract and I have just resigned after building this business and making it way profitable. He invested $500k and will probably make $1,000,000 next year after ALL my hard work of putting in the store, buying the cars, fixing the cars and selling the cars as well as chasing the money and the title work. I was exhausted and not getting anywhere with him on a contract. What am I entitled to as far as severance or anything else since I resigned? Thanks
Submitted: 1 year ago.
Category: Legal
Expert:  Richard replied 1 year ago.

Hi Jason. My name is ***** ***** I will be helping you today! It will take me just a few minutes to type a response to your question. Thanks for your patience!

Expert:  Richard replied 1 year ago.

You have two components of your relationship. One, are you entitled to anything going forward as compensation? Two, are you entitled to anything because you are a 49% partner? With regard to the first question, since there is no formal employment contract, if you resign your "job" (NOT your ownership), then you would not be entitled to get paid into the future since you are no longer working. BUT, here's where the second question is important. You OWN 49% of this business. So, your partner either must buy you out, which would entitle you to 49% of the value of the business today or you would continue to own this interest in the business. And, you have the option of selling your 49% to a third party if your partner won't buy it.

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