Just cut my partner loose

Discussion in 'Business Operations' started by sodzilla, Mar 4, 2004.

  1. sodzilla

    sodzilla LawnSite Member
    Messages: 219

    I just got read of my partner. We have been friends for 12 years. And thought it would have worked out. When we first formed the partnership last July everything seemed allright. We did have an attorney file the papers for us. We weren't planning to start until this year anyway. We agreed to both do everything we needed to do to get the business going. And split costs 50/50.

    Here come the problems. I payed for printing, postage, attorney fees, office supplies, membership to PLCAA, also taking their cert. program( another $249) , the phone bill, PO Box rent, company shirts, misl. tools, ect. I have close $3,000 in startup cost and countless hours of research and running around pricing equipment, and bidding jobs. While he goes to the Bar. I also got my pesticide cert. He was going to but couldn't afford the $45 for the book at he time I orderd mine, and then he forgot about it. He did paid for 1/2 the attorney and one round of postage. At least it didn't cost me much to buy him out. But know I have more filing fees.

    We didn't buy any equipment yet. Just have the stuff I already own. I gotta get him off the ownership so I can financing. Never have a partner with bad credit.

    Thats not it though. After we formed the partnership he's gotten two speeding tickets over 20 mph over posted limit. (That will get us cheap ins). And he neglected to tell me about a credit card that got turned over to collections.

    I have alot to risk starting my business. I'm married and we just had our 4th kid. I have a house and other thing to pay for. I'm not letting a friend no mater how good of a friend he's been freeload off my work. especially when he would rather spend his money drinking instead of helping with exspenses.

    For all of you other guys thinking of a partnership. Think about it long and hard before you go ahead and do it. Like I said we were friends for 12 years. However, there are things you don't know about people untill you start doing a business with them.

    Thanks for listening,

  2. MudslinginFX4

    MudslinginFX4 LawnSite Bronze Member
    Messages: 1,170

    Good story, sorry you had to learn the hard way but I'm sure others will benefit from it. I wish you the best of luck in your business this year.
  3. myoder

    myoder LawnSite Member
    Messages: 140

    Sorry to hear about your partner, you're better off without him by the sounds of it anyways... Good luck to you!
  4. twins_lawn_care

    twins_lawn_care LawnSite Senior Member
    Messages: 932

    me and my partner split after the first year as well. More so just for different interests. Good thing is we are still friends, and hopefully you guys will save your friendship if you choose to.
    Good luck going solo, so far it looks good for us doing it!
  5. Mykster

    Mykster LawnSite Senior Member
    Messages: 668

    I thought about asking a friend I've known since HS. One of those "I can do anything, and do it very well" kind of guys. I knew if I could get him to go in with me that we could do good together. Well, after reading all the bad experiences I've read about partnerships here at LS, I decided not to. Instead I will be hiring him as my installation guy. I asked him, he accepted. So hopefully, this will be a good year.
  6. Lombardi

    Lombardi LawnSite Senior Member
    Messages: 538

    I have heard of very few partnerships being successful in this business. I had a partner 3 years ago. He had a lot of years experience and I wanted to learn from him. About the only thing I learned was that he was a con artist and before we split he had me for about $5k. Never again.
  7. mtdman

    mtdman LawnSite Gold Member
    Messages: 3,143

    This statement sums up the risks of partnership completely.

    Good luck.
  8. ksland

    ksland LawnSite Senior Member
    Messages: 927

    Prime example. Good to hear you straightened it out before you got a bad name in business. Good luck with your solo venture
  9. ipm

    ipm LawnSite Senior Member
    Messages: 264

    I had to learn the hard way as well. That can be one of the most frustrating things to deal with. The 1st mistake is 50/50....it never works that way. One has to have control 51/49%etc., you have to spell out job responsibilities, etc. I will never have a partner EVER again.. I am almost to the point of dissolution and it has been the hardest 4-6 months I have ever endured. Good Luck!!! A positive way to look at it is a valuable lesson learned.
    I am a very old 32:D

    Was this just a partnership agreement between you and him?? or was the business/corp.stockholding share, etc. set up 50/50??

    In other words, can he try to take your business away from you or is it just a dissolution between two people. I hope for your sake it is simply a partnership dissolution and you have control of everything else.:confused:

    How does your charter, articles of Inc. read, or do you have one?
  10. sodzilla

    sodzilla LawnSite Member
    Messages: 219

    We are still friends. Just not partners anymore. We were a general partnership LLC. I just talked to him nicely one day and spelled it out. He agreed with me. We never did have an operators agreement. That was one of the things he could never find time to do. We decided that I would just pay him back the small amount he had put in. Comes to around $450 or so. Know I have to refile all the paperwork for the tax stuff and other things to be a one party LLC.

    We agreed that I would use him for a sub next winter. He is pretty handy with a snowplow. He was happy with that.

    Thanks everyone for the support,


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