when a business partner resigns..... - GoFuckYourself.com

Juicy D. Links · 08-13-2002, 05:14 PM

long story short

One of my business partners in my wholesaling business has had it and wants to resign.....

Now do you give lump sum payout and say adios becasue the business will become fully mine now.....

How to deal with this any suggestions would be appreciated

mrthumbs · 08-13-2002, 05:23 PM

Will he be starting a new venture in the same segment on his own or any risk of that..??

hyper · 08-13-2002, 05:24 PM

you can either buy him out completely, buy him out partially, usually with a no compete clause

hahmike · 08-13-2002, 05:27 PM

in terms of pay off from the business
he doesn't have to take cash ... he couldn take fixed assets, i believe

BrettJ · 08-13-2002, 05:28 PM

if you got the money to give him a lump sum go for it. you can probably work it so that he gets less if he takes the lump sum - because he will be putting the business in a bad position ie cash strapped - "depriving the business of cash that could be used for xyz". plus there is the time value of money.

but if you pay out him out monthly - you might be responsible for paying a little interest - if he is smart enough to ask - that interest might also come in the form of him expecting more of a payout because he is having to wait to get his money... essentially he is still an owner of the company and could put a lien on the business til you have paid him off.

don't you have anyting in writing regarding what would happen if the company ever dissolved?

BJ · 08-13-2002, 05:38 PM

Lump sum is best and heres why and what to do:

Make him sign something that says that all inside knowledge of your business belongs to your company, meaning that for x ammount of years he cannot use this knowledge to compete against you.

Now, if you go the month by month thing, this guy could just piss you off, and claim he is still owner of the company until you pay him off and numerous problems can arise from this situation.

Ive been down this road before and trust me, you want to be done with this guy and as quickly as possible. Prolonging the process will only cause trouble. What if your company becomes the next microsoft and your still slowly paying him off? Although it hurts, the lump sum payment is the way to go.

Also, heres a fun twist you can pull if you dont like him..... designate the payout for "services rendered" meaning that the buyout is an expense to you, but reportable income for him... hehe

Juicy D. Links · 08-13-2002, 05:41 PM

Lump sum is what i am going to do , now to i take in to considering the cash on hand, merchandise ( we have a 15,000 sq ft warehouse filled to capacity, or just shoot a number at him and say take it or leave it

Ted · 08-13-2002, 06:38 PM

Hindsight is a wonderful thing but when setting up a partnership you should always think about how it will be disolved if the time comes. It saves a lot of headaches at the end of the day.

EscortBiz · 08-13-2002, 09:39 PM

whwere in ny are ya? are you mallcom?

B40 · 08-13-2002, 09:41 PM

What kind of stuff do you wholesale??

Sly_RJ · 08-13-2002, 09:51 PM

Did you have a partnership contract, by any chance? If so, your lawyer should have included some clause regarding this possible outcome.

wannabeapornstar · 08-13-2002, 09:53 PM

just shoot a number and tell him take it or leave it

B40 · 08-13-2002, 10:50 PM

Quote:

Originally posted by Sly_RJ
Did you have a partnership contract, by any chance? If so, your lawyer should have included some clause regarding this possible outcome.

That would be one of the main reasons to draw up an official contract.

UnseenWorld · 08-13-2002, 11:08 PM

There should have been a partnership agreement with this situation anticipated. Easy to see that now, huh?

Theo · 08-13-2002, 11:30 PM

Quote:

Originally posted by hahmike
in terms of pay off from the business
he doesn't have to take cash ... he couldn take fixed assets, i believe

in few words....give him the chairs

Fletch XXX · 08-13-2002, 11:42 PM

Must suck to have to split money like that, yuck.

Good lucky.

B40 · 08-13-2002, 11:45 PM

I hope he wasn't your brother/cousin/uncle or any other relative. One of my high school buiz teachers told us to never start a partnership with a relative.

dada · 08-14-2002, 12:07 AM

wouldn't his sudden death solve everything?

Rodent · 08-14-2002, 12:30 AM

If you had a lawyer right up your operating agreement and didnt include anything how a partner get leaves/quits/whatever he needs to be fuckin fired.

08-13-2002, 05:14 PM	#1
Juicy D. Links So Fucking Banned Industry Role: Join Date: Apr 2001 Location: N.Y. -Long Island -- Posts: 122,992	when a business partner resigns..... long story short One of my business partners in my wholesaling business has had it and wants to resign..... Now do you give lump sum payout and say adios becasue the business will become fully mine now..... How to deal with this any suggestions would be appreciated

08-13-2002, 05:24 PM	#3
hyper Confirmed User Join Date: Mar 2002 Location: Mass Ass Posts: 5,294	you can either buy him out completely, buy him out partially, usually with a no compete clause __________________

08-13-2002, 09:39 PM	#9
EscortBiz Fuck Checks, CASH only! Join Date: May 2002 Location: New York City Posts: 19,422	whwere in ny are ya? are you mallcom? __________________ Spanking, Medical Fetish, Sleeping, Strap-on Anal Lesbians, Girls Fucking Guys, Handjob site REAL HOT, Shemales, Anal and Ass Licking sites 100% Real EXCLUSIVE with amazing retention, ccbill payouts, lots of content FREE FTP HOSTING Promote the largest and oldest member paid escort site, Converts 10 times better then any dating site, CCBill payouts ICQ# 158802076

08-13-2002, 09:41 PM	#10
B40 Confirmed User Join Date: Jul 2001 Posts: 7,020	What kind of stuff do you wholesale?? __________________

08-13-2002, 09:51 PM	#11
Sly_RJ Live Hard - Die Hard Join Date: Feb 2002 Location: Ready to leave... Posts: 17,042	Did you have a partnership contract, by any chance? If so, your lawyer should have included some clause regarding this possible outcome. __________________ PHAT SERVERS - Quality dedicated hosting at a quality price! sly AT phatservers DOT com - 147479144

08-13-2002, 05:23 PM	#2
mrthumbs salad tossing sig guy Join Date: Apr 2002 Location: mrthumbs*gmail.com Posts: 11,702	Will he be starting a new venture in the same segment on his own or any risk of that..??

08-13-2002, 05:27 PM	#4
hahmike So Fucking Banned Join Date: May 2002 Posts: 2,488	in terms of pay off from the business he doesn't have to take cash ... he couldn take fixed assets, i believe

08-13-2002, 05:28 PM	#5
BrettJ ol' timer Industry Role: Join Date: Jan 2001 Location: Seattle WA Posts: 4,715	if you got the money to give him a lump sum go for it. you can probably work it so that he gets less if he takes the lump sum - because he will be putting the business in a bad position ie cash strapped - "depriving the business of cash that could be used for xyz". plus there is the time value of money. but if you pay out him out monthly - you might be responsible for paying a little interest - if he is smart enough to ask - that interest might also come in the form of him expecting more of a payout because he is having to wait to get his money... essentially he is still an owner of the company and could put a lien on the business til you have paid him off. don't you have anyting in writing regarding what would happen if the company ever dissolved?

08-13-2002, 05:38 PM	#6
BJ Confirmed User Join Date: Mar 2002 Location: asia Posts: 5,590	Lump sum is best and heres why and what to do: Make him sign something that says that all inside knowledge of your business belongs to your company, meaning that for x ammount of years he cannot use this knowledge to compete against you. Now, if you go the month by month thing, this guy could just piss you off, and claim he is still owner of the company until you pay him off and numerous problems can arise from this situation. Ive been down this road before and trust me, you want to be done with this guy and as quickly as possible. Prolonging the process will only cause trouble. What if your company becomes the next microsoft and your still slowly paying him off? Although it hurts, the lump sum payment is the way to go. Also, heres a fun twist you can pull if you dont like him..... designate the payout for "services rendered" meaning that the buyout is an expense to you, but reportable income for him... hehe

08-13-2002, 05:41 PM	#7
Juicy D. Links So Fucking Banned Industry Role: Join Date: Apr 2001 Location: N.Y. -Long Island -- Posts: 122,992	Lump sum is what i am going to do , now to i take in to considering the cash on hand, merchandise ( we have a 15,000 sq ft warehouse filled to capacity, or just shoot a number at him and say take it or leave it

08-13-2002, 06:38 PM	#8
Ted Confirmed User Join Date: Nov 2001 Posts: 830	Hindsight is a wonderful thing but when setting up a partnership you should always think about how it will be disolved if the time comes. It saves a lot of headaches at the end of the day.

08-13-2002, 09:53 PM	#12
wannabeapornstar Confirmed User Join Date: Mar 2002 Posts: 766	just shoot a number and tell him take it or leave it __________________ <a href="http://www1.bestpornhost.com"><font color="Orange" face=tahoma size=+1><b>BestPornHost.com</b></font></a> - Get listed on thehun with us. ICQ \| # 153855685

08-13-2002, 11:08 PM	#14
UnseenWorld Confirmed User Join Date: May 2001 Location: Portland, OR, USA Posts: 5,279	There should have been a partnership agreement with this situation anticipated. Easy to see that now, huh? __________________ SIG TOO BIG! Maximum 120x60 button and no more than 3 text lines of DEFAULT SIZE and COLOR. Unless your sig is for a GFY top banner sponsor, then you may use a 624x80 instead of a 120x60.

08-13-2002, 11:42 PM	#16
Fletch XXX GFY HALL OF FAME DAMMIT!!! Join Date: Jan 2002 Location: that 504 Posts: 60,840	Must suck to have to split money like that, yuck. Good lucky. __________________ Want an Android App for your tube, membership, or free site? Need banners or promo material? Hit us up (ICQ Fletch: 148841377) or email me fletchxxx at gmail.com - recent work - About me

08-13-2002, 11:45 PM	#17
B40 Confirmed User Join Date: Jul 2001 Posts: 7,020	I hope he wasn't your brother/cousin/uncle or any other relative. One of my high school buiz teachers told us to never start a partnership with a relative. __________________

08-14-2002, 12:07 AM	#18
dada Registered User Join Date: Jul 2001 Posts: 89	wouldn't his sudden death solve everything? __________________ AWS 2 AdultWebmasterSoftware.com

08-14-2002, 12:30 AM	#19
Rodent Confirmed User Join Date: Mar 2001 Location: ReliableServers.Com Posts: 1,462	If you had a lawyer right up your operating agreement and didnt include anything how a partner get leaves/quits/whatever he needs to be fuckin fired.