How to choose to divide equity in your business is very, very important. As you’ve learned the hard way, when personalities clash or goals change, it can make it incredibly difficult to make changes. Ideally, you would have established responsibilities and expectations for each member so that if they were to fall short you would have a legal document that could help you navigate this problem. However, I am assuming that you don’t have anything like that in place at this time.
Here are a few considerations:
- You could create an agreement now that defines the responsibilities you would like each member to have. If they fail short of that, then you could have a better legal argument for removing them.
- You could negotiate “buying out” their share and totally ending the working relationship altogether.
Either process should be done so with the assistance of a knowledgeable business attorney. Your goal as a business owner is to protect the company and ensure its success based on your early planning and ability to transform the business as goals change or milestones are met (or not).
could be the solution for you. We connect clients with the best lawyers for their needs. Our business attorneys are educated at the most prestigious colleges and have the experience you are looking for. Our rates are not only affordable, but we offer flexible payment solutions as well. Check out our website to learn more about what we do and to set up a consultation.