Partnership
Lacey, WA
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Posted about 1 year ago in Partnership
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Hi my wife and I got into a partnership business with another couple, It was his idea to start this business. We bought a concession trailer and sell hamb and hotdogs and things. The verbal agreement was to pay 50/50 I borrowed $10,000 from my mother to purchase the trailer and he was supposed to pay the other $5,000 in a couple of weeks. Well that came and went. His wife asked my wife if it would be ok if we all worked together to pay the $10,000 back which meant that we work for free and all profit goes to payback the loan. We each spent an additional $4,000 each to start up the business, which we paid ourselves back first. My problem is that our partners are so irresponsible that they cannot even make time to go to the bank and open an account with us. So we opened a bank account in our names. The trailer is also registered in our name. So the problem is that our partners are not helping with maintenance of the trailer or the cleaning after an event and starting this year not working the business as much as we are,
I schedule all the events pay all the bills and do all the accounting and tax preparation myself. All these people do is show up to work sometimes. My question is can I just tell them the partnership is not working out and take full control over the business ourselves? We have no partnership agreement in writing everything is verbal and all assets are in our name. These are friends of ours or used to be friends of ours after this takes place. I know don't ever go into a partnership with friends and if you do put everything in writing, A tough lesson to learn. - Is this your question? Add additional information Answers (2)Thuong-Tri Nguyen
This attorney is licensed in Washington.
Posted about 1 year ago.
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In WA, if there is no written partnership agreement, the state has a default agreement for the partnership that likely covers most common situation. The WA statutes on partnerships are Title 25 RCW (Partnerships). The text of the statutes can be accessed here: http://apps.leg.wa.gov/rcw/default.aspx?Cite=25 .
One partner cannot just appropriate the partnership's assets to that partner's benefits. If all the partners can still talk civilly with each other, you all should sit down and discuss business. If the partners no longer want to talk with each other, some or all will likely have to hire attorneys to help resolve the situation. (Depending on how much money is at stake, hiring attorneys may not be worthwhile.) Valerie Ann Farris
This attorney is licensed in Washington.
Posted about 1 year ago.
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I'm not sure from your description exactly how much each of you contributed to the business - and that will be important in determining whether a partnership exists under Washington State law. If you have paid for everything up to this point, there may not be a "default" partnership. In any case, you should consult with an attorney in your area to determine what your options are.
Best wishes, Valerie
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