If I sign for an incorporation and my 50/50 partner decides to pursue the business on his own, does that make me liable for 50% of the fees going forward?

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If I sign for an incorporation and my 50/50 partner decides to pursue the business on his own, does that make me liable for 50% of the fees going forward?

Who should pay for the incorporation? Who should pay for any other costs associated to starting that business from the get-go?

Asked on July 13, 2014 under Business Law, New York

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Ok you need to speak with a lawyer about the incorporation as well as a partnership agreement.  These are terms that you need to agree to and feel comfortable with from the start.  You do not want to be left holding the bag.  You need to discuss client lists as well as trade secrets as well as non compete clauses in the agreement.  Anything that may apply. Do not get involved with something that is going to cause you monetary damage and grief.  Good luck.


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