r/smallbusiness • u/TankFluffy4218 • 9h ago
Business Partner Nightmare
Looking for advice from anyone who’s dealt with a 50/50 LLC partnership dispute in New York.
Our business is approximately 8 months old, with less than $2,000 in physical assets. We have a few thousand followers on each of our social media platforms.
I’ve personally invested a significant amount of time building the branding, marketing, and social media presence, along with handling much of the tax-related work, filings, and administrative responsibilities to keep the business compliant.
The business has been inactive for approximately two months, with no upcoming bookings, but we’re still incurring expenses such as storage.
I’ve offered to buy out my partner’s 50% interest because I’d prefer to continue the business rather than dissolve it. However, we haven’t been able to agree on a price, and my partner would prefer dissolution.
I’ve contacted a mediation center twice and requested mediation, but haven’t received a clear response from my partner about participating.
We have a basic operating agreement, and I’m trying to find the most cost-effective way to resolve this without spending more on legal fees than the business is worth.
Has anyone dealt with something similar? Would you pursue mediation, consult an attorney, or agree to dissolve?
And if the business is dissolved, what happens to the social media accounts and branding when one partner has done most of the work building them?
I’d really appreciate hearing about your experiences or any practical advice.
3
u/firstbattling 9h ago
Man, 50/50 partnerships can be such a trap when things go sideways, especially this early. Been around a few folks who went through similar messes. If there's no money coming in and you're just bleeding storage fees, dragging it out is gonna cost you more than the assets are worth.
Since you've got an operating agreement, read it like a hawk for any dispute resolution or dissolution clauses. That's your map. If the other guy won't even respond to mediation, you're kinda stuck, you can't force someone to negotiate. A consult with a business attorney will run you a few hundred bucks, but they can spell out your real options in New York, which might just be filing for judicial dissolution. The social media stuff is tricky. If the accounts are in the LLC's name and built for the business, a judge could consider them an asset to be divided, even if you did all the grunt work. Sucks, but that's the risk of not having that spelled out in the agreement.
1
u/flygurl60 8h ago
You might try reframing the invitation to mediation through his interest. That might motivate him to participate. Also you can reduce legal costs by going to your local bar association and using their reduced fee directory if cost is a concern.
3
u/SafetyMan35 9h ago
How far apart are you on your offers? If you are miles apart it might be cheaper and easier to start from scratch
2
u/TaylorSwift_is_a_cat 8h ago
Sounds like he is being a d**k.
Start your own LLC. Block the ex-partner on social media. Change the business name and passwords on social media accounts to the new company.
Move the inventory to a new storage unit in your name.
Send him a check to buy him out. The amount you feel is fair.
Let him take you to court if he has a problem with it. (He likely won't, it's not worth his time for such a small asset company.)
3
u/EverySingleMinute 8h ago
The partner would rather dissolve the business than to have you give him money to buy him out?
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