What are my obligations to the company after I am bought out of the partnership?
I am in a partnership with two other partners. We do not have an operations or partnership agreement. We also do not have a buyout agreement. My partners want to buy me out and I want to sell. The company is not yet profitable and the only value of my buyout would be my initial investment to start the business. If I sell my share of the partnership does that end my obligations and liabilities to the company and to my partners?
In other words, if I agree to sell my share to them do I just walk away with what I am paid and never have to deal with the company again?
Answers:
Watch for limitations which may find their way in the agreement. They may have a competition clause in it. Other than that take the money and run. One thing to watch out for is pending agreements that my be prompting them to deal you out. You should have an entitlement to income from any deals in the works at the agreement time.
Get an attorney! Even if for the limited purpose of drafting an all inclusive "buy out" contract. It will benefit your partners and you in the long run. In fact, I'd recommend that they hire the attorney, so that everything is legitimate in the future.
I would say yes, but make sure you draw up a contract outlining the buy out agreement. If you are not staying on in the business then the other two partners will have full responsibility of the company, but to cover your back write a contract of sale up.
technically yes, but make sure you have proof of the financial situation and signed and notarized documents of the buyout and the dates, in case any legal issues come up in the future regarding the company you can document you were no longer involed. Also, if you filed legal papers with the state in LLC or INC issues make them file the propper paper work to resolve you of all responsibility.
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