Business Law Articles

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What to Do When You Think a Business Partner is Stealing

When a business partner is stealing, you can sue the partner for embezzlement. Embezzlement means the partner had a right to control the company’s money or asset and took the asset for personal use and benefits.

How Do You Deal With a Selfish Business Partner?

The best way to deal with a selfish partner is to give them the attention they crave but not struggle for power. Then, propose creative solutions to benefit the company and all partners.

What Rights Do The Partners Have As Owners?

In a general partnership, all partners have equal ownership rights, including share ownership of all business property, profits and losses, and the right to continue in the business.

What is it Called When You Steal Money from Your Own Business?

It is called embezzlement when someone steals from their own company or employer. Embezzlement occurs when the person stealing has control of the money or asset and takes the money for personal use. A person can steal from their own company when there are two or more owners.

What Happens When Someone Steals Money from a Company?

When a person steals from a company, the person may be charged with theft, embezzlement, misappropriation, or breach of fiduciary duty. A criminal charge may be initiated against an employee or a civil lawsuit started by the business owner or partner.

What Happens When Business Partners Disagree?

An unhappy business partner may determine if there was wrongdoing by the other partner and initiate a lawsuit to gain control of the company and negotiate a buy-out. Alternatively, the partner who initiated the lawsuit can seek a judicial dissolution of the business.

Can You Force a Business Partner Out?

To force a business partner out, look to the partnership agreement to determine the requirement for forcing or buying a business partner out. If the partnership agreement is silent or doesn’t exist, there must be a legal reason to take the partner to court, e.g., stealing money, not performing their partnership responsibilities, etc.

What to Do if Someone Reneges on a Verbal Agreement

You may pursue a lawsuit when a person reneges on a valid and enforceable verbal agreement. First, determine if there is a valid oral contract. An oral contract is valid when there is evidence of an offer made, the offer was accepted, and the parties exchanged value.

What can you do with a toxic business partner?

A toxic business partnership could lead to loss of customers, a toxic work environment, and loss of profits.

What Do You Do If You Have a Bad Business Partner?

If you have a bad business partner and speaking to the partner does not work, your options are: a) shut the business, b) buy out the partner, c) sell your ownership or d) sue the partner.

What Do You Do When a Family Member Steals From You?

When a family member steals from you, talk to the person and present proof consisting of documents or circumstantial evidence.

What Happens if One Business Partner Wants Out?

When one business partner wants out, the partnership dissolves unless there is a buy-out. Before filing for business dissolution, the company must pay off its debt and satisfy its business obligation. If there is a buy-out, the value of the buy-out must be agreed upon.

Will Verbal Agreements Hold Up In Court?

Although difficult to prove, verbal agreements hold up in court if specific requirements are met. A strong verbal agreement may be established with documents, receipts, emails, text messages, and money transferred.

Signs Business Partner Is Stealing Money from Company

One of many signs a business partner is stealing money is to look at the net profit from the Profit and Loss statement (“P&L”) and compare it with the balance in the business bank account. If the amount in the P&L and the bank statement does not match up, it is a strong sign that a business partner is stealing money.

Is Sabotaging a Business Illegal?

It is illegal for a person to sabotage a business and may face civil and criminal liability. The saboteur can be an employee, business partner, or competitor.

Partner Sabotaging Business

What are your rights when your business partner sabotages the business? Sabotaging a business is illegal, and when a once trusted partner is the saboteur, he breaches his fiduciary duty.

My Business Partner is Making Decisions Without Me

Many business partners contact our partnership attorneys, stating, “My partner has been making decisions without me and treating me like an unequal partner.” When your business partner is making decisions without you, schedule a time to talk to your partner about your concerns. Always stay calm to influence your partner to remain calm.

How to Deal with a Controlling Business Partner

To deal with a controlling business partner, limit your communication to only your joint responsibilities, ignore their condescension, stand your ground, speak up when necessary, or exist the partnership when all fails.

How Do You Settle Disputes Between Business Partners?

To settle a business partner’s dispute, call for a meeting, gather documents that show the root of the disagreement, meet with the partner, listen and do not rush to judgment, and propose solutions. Do not hesitate to ask for outside help, such as a business dispute attorney.

Can You Embezzle From Your Own Company?

Yes, you can embezzle from your owner company if the company has more than one owner. Embezzlement occurs when a person is entrusted with money and misappropriates money for personal use. If you are the company's sole owner, you cannot steal from your company; meaning, you cannot embezzle money from yourself.

Company director stealing from company

A director’s misappropriation of company funds for personal benefits is illegal. When a director steals money from a company, it is called embezzlement and constitutes a breach of fiduciary duty.

4 Tips on How Do You Deal With a Toxic Business Partner?

1. Anticipate conflict and resolve it before the conflict occurs, 2. Slow down and remember the big picture, 3. Listen to the partner in a calm environment, 4. Contact outside parties for assistance.

Embezzlement: Family member stealing money from your own company

What to do when your business partner steals from you?

When a business partner embezzles money, you may file a lawsuit for misappropriation, breach of fiduciary duty, and accounting to get back the money.

How to get rid of a 50 50 business partner?

Depending on the reason for getting rid of a business partner, the method may include a business dissolution, buy-out, or filing a lawsuit.

How Do Partnership Partners Get Paid?

In a general partnership, the partners are paid by withdrawing money from the business earnings or distribution of the business profits. All partners are subject to the limit of their ownership interest in the company. But how do business partners in an LLC, Inc., and LP get paid?