I agree with this and with Hoover's assessment.

Your wife is the creative talent and the brains of the operation, the other partner is a clerk.
At 6 months, if the store front isn't opened and you don't have brand identity the business isn't worth anything.

That can be very frustrating to hear as a person whom has sunken significant finance, time, heart and soul into a business venture. I was approached about my company a couple of times around my 3rd year and when it came to pricing, the comment was "what is this business worth if you die tomorrow". Were my clients and contracts loyal to ME or to my brand name?

A rough question, but if your wife is the brains and the creative talent, would the business have any wholesale value if something terrible happened to her? Would there be anything more to sell than the office supplies and start up materials?

If so....the value of the business to me is the cost of what those items would bring.


If they're peckerheads about it, shut the door, fire up a new LLC and switch over what you have to that Brand.

In short, I'd tell the partner to pump aids gas up her hatchet wound and piss on a brush fire.

Assets-Liability= What the company is worth if you don't want to liquidate


They are absolute morons if they think they will get the money back that they have put in this early, and since there are two women involved this is going to have several meltdown moments.

I have heard stories that early partnership problems like this have a common theme: The seller thinks they are entitled to getting paid for their time, just like an employee.

Good luck.

If you offer them some money, also offer them the opportunity to purchase the business from you for the same amount.

Are you personally guaranteeing the lease?

LMAO
"Hatchet Wound"

and don't go into business with friends...

What kind of business (LLP, LLC, etc?). Is there an operating agreement with buyout provisions? Before any buyout, I would definitely value the business, assets, etc. She shouldn't be able to get any more out of it than what she can prove she put into it. Sounds like you need a good attorney as well. These types of transactions are part of the types of things that my attorney handles (checking for loopholes, legalities, drawing up contracts and agreements, etc.).

:LOL:

This.


Especially if there are two females involved.

If you suspect "freewheeling with the books" then you would be better off terminating this business and starting fresh. Business entities need to be separate from personal holdings- this is what protects your stuff in the case of audit or litigation. I wouldn't want to be the only one holding the bag some years from now trying to explain that the freewheeling that occurred with the business I now solely own was not my fault.

Option 3


Never go into a partnership with anyone in business... Messy Messy Messy

Well, I wouldn't go that far . . .

Dane is wise. Having been through this myself, he's absolutely correct. Don't forget, you're not only buying their share of the business. You're also buying their share of the debt and liability/risk, it is absolutely crazy to think you can get $ for $ that soon after starting a business.

I agree with a lot that has been said already. It's almost laughable that they expect money at this point in the business juncture.

friends + money = enemies