When you start a business, it is wise to set up an operating agreement or a partnership agreement with your business partner. This should spell out the specific steps that need to be taken to remove someone from the company.
Why would you have to get rid of your business partner and perhaps even take them to court? Here are a few signs that could indicate that’s where your business relationship is heading:
1. Your partner has their own plans. They don’t involve you. This person may work hard, but your goals do not line up. Maybe you want to start a successful company that you can pass on to your kids, for instance. However, your partner is just hoping to make it large enough to sell to a major corporation.
2. You do most of the work. While work does not always get split up equally, it needs to feel fair on both sides. This is especially true if you have equal ownership or the same paychecks. If you feel like you’re doing 90 percent of the work for just 50 percent of the financial gain, it’s a problem.
3. You would never spend time together outside of work. Business partners do not have to be the best of friends, but it’s a red flag if you would never spend time together if you weren’t business partners. What personal conflicts do you have and how might those eventually impact your company?
If you need to remove your partner, make sure you know what legal steps to take. Remember that this could get complicated if your partner does not want to be removed, and you could end up in court.