If I’m in a 3-way partnership, can 2 partners force the third out of the business?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If I’m in a 3-way partnership, can 2 partners force the third out of the business?
New Link Destination
gether we own a hair salon. The 3 of us each came into the partnership with $3000; we used this money we bought salon equipment, furniture, decor, etc. We split the monthly cost of running the salon 3 ways. We have no contract, no code of conduct or anything binding us. We have never even discussed what would happen of one day one of us wanted out of the busines. Do we have any rights?
Asked on November 14, 2015 under Business Law, Idaho
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
There is not enough information here to definitively answer your question, because the form of business organization (e.g. partnership; LLC; etc.) will influence the answer and you don't state what it is.
That said, because you say you have no contract or anything binding you, I will assume this is an informal partnership, not an LLC or anything more formal. In that case, they can force you out, but will have to reimburse you for your share of equipment, furniture, etc. (if they don't you could sue them for it) and also would have to distribute to you your share of any earned to date, but not yet distributed profits (and again, you could sue if necessary).
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.