Keep interest in business started while leaving town.

Discussion in 'Starting a Business' started by goldenrulers, Apr 15, 2012.

  1. goldenrulers

    goldenrulers
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    My husband started up a thriving automotive business in the town we currently live in. He brought on a partner with just a handshake agreement and they have been working this business for many years now.

    I may be leaving town for a job 1500 miles away and my husband would follow.

    How can he keep his interest in the auto shop he started up while moving 1500 miles away?
    Or will he simply have to walk away and lose all he has built up?

    I am thinking they should hire someone to do the work my husband would at the shop (fill his position), my husband should receive a portion of revenue and remain a consultant in the business as the founder.

    Any ideas or suggestions?

    Thank you for your help.
     
  2. Business Attorney

    Business Attorney
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    Well, as you have probably realized, having a business partnership without a written agreement that includes an exit strategy for both partners is not a good idea.

    In the absence of a written partnership agreement, there is no easy answer. State partnership law governs their respective rights and obligations. That is usually either the Uniform Partnership Act or the Revised Uniform Partnership Act, sometimes with state-specific amendments. A lawyer in your state can help answer questions.

    Generally, your husband's absence from the business has no effect on his ownership of his partnership interest. If he and his partner don't agree on how to handle things going forward, either one of them can terminate the partnership. On dissolution, each of them would be entitled to his proportionate share of the assets. That typically wouldn't work too well for the person leaving town, since one-half of the assets of a dissolved business in now-remote location probably have very little usefulness or value.

    The best thing your husband can do is learn about his legal rights, such as they are, and then sit down with his partner and try to work this out.
     
  3. sallya121

    sallya121
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    Yes, it is better to hire someone and also a consultant there ,then you can know what the progress about the business.
     
  4. Navida

    Navida
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    I would like to suggest that you should consult your lawyer regarding this matter. Partnership business should be started with agreement, no matter your partner is how much close to you. Now before leaving town try to solve all matters in written form and if it is not possible right now then a person should be hire for working in place of your husband. who will look after your business and will give daily report about the business.
     

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