If my business partner is not giving me my share of the profits, what canI do legally?
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If my business partner is not giving me my share of the profits, what canI do legally?
I have invested my money into a business with the condition of getting half of the profit from the business, but the owner of the business is not giving me any profit for a long time. Is there any legal action I can take to get my profit share? I know that the business if making money.
Asked on February 8, 2011 under Business Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
The legal action you can take is to sue the business and/or the owner (who you can sue depends on the business structure--sole proprietorship, LLC, corporation? and also on who signed any agreements, in what capacity--e.g. in a personal capacity or as an officer of the business). IF there was an agreement that you would receive half the profit and that agreement is not being honored, you can sue to enforce the agreement. Note though that "profit" is a slippery concept: if you are to get 50% of the "profit," but right now the business, though paying salaries and its operational costs, is technically running at a breakeven or loss, there is no "profit."
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