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CalAttorney2, Attorney
Category: Legal
Satisfied Customers: 10244
Experience:  Civil litigation attorney for individuals and businesses.
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My group are preparing to start a business. Five people in

Customer Question

Hello, my group are preparing to start a business. Five people in my group worked together and came up with a business plan in a business program. But there is one person in our group kind of not doing anything helpful. So since we are right now considering to actually start the business, we want to kick him out. We are just worrying that whether he will sue us or not if the business turn out to be a success. So is he actually able to sue us for not including him in the business?
Submitted: 1 year ago.
Category: Legal
Expert:  CalAttorney2 replied 1 year ago.

Dear Customer,

Thank you for using our forum. My name is ***** ***** I hope to assist you today.

If I understand your question correctly, you are planning on forming a business, but you are worried that someone might later sue you because they were not included in your business.

There is no such cause of action.

I understand you may be concerned about some type of unspecified intellectual property associated with your business idea, but in most cases a business concept is not independently categorized as "intellectual property" in the same way that a new device, manufacturing process, piece of artwork, or music would be.

So again, there is no such cause of action.

(As an aside, I highly encourage all new business owners to work with a local business law attorney to help draft their operating documents as opposed to using "off the shelf" documents - without having specially drafted documents you do not get the full benefit of the legal form you choose (LLC or Corp.), and you are unable to specifically prepare your business for expansion, contraction, disputes, dissolution, or many other types of issues specific to your business (that is what you are paying the attorney for) - it is much easier and less expensive to pay for this up front than it is to try to deal with problems later with a poorly drafted set of documents that are usually just a regurgitation of the state's corporate code).