Hi, I'm Denice Gierach. Sometimes, even if your business partner started out as your best friend, you may still end up fighting, and your business can become deadlocked. Many of my clients have questions regarding business disputes, so I'm going to list the most frequently asked questions and their answers.
My partner doesn’t do anything in the business, but he’s still drawing a salary. How do I stop his salary?
The division of labor in a business is important. Many times the partners you thought you had that were good, may not be good. They may have a different work ethic than you. It sounded like a good idea at the time. When you got together with that person, maybe they offered a particular skill set that you thought you needed, but that person is not producing. If you’re the majority shareholder and have retained the right, you may be able to let that person go. That doesn’t mean that you don’t still have them as a shareholder, and depending on your state law, they still may be entitled to financial information from the business. So be mindful of that when you take on new partners. There are some rights that they have, but also really take the time to determine what type of person this partner is going to be at the front end. If you can pay for their services in a different way, that may be a better option.
I hope that you've found my answers helpful. Please be sure to check out the other videos on my website, including those from our Frequently Asked Questions, the Gierach Law Firm Guarantees, and What to Ask for when You Are Considering an Attorney.
If you have more specific concerns or would like to talk with us, call (630) 756-1160 or visit www.GierachLawFirm.com.
Businesses across northern Illinois rely on The Gierach Law firm for outstanding legal services in all areas of business law, tax law, and estate planning. If your business is facing a business contract dispute or other legal dispute, the Gierach Law Firm can help. We keep our eyes on the big picture while advising our clients on the most effective strategy to obtain a successful result. Contact our Naperville law office for business litigation assistance in the greater Chicago area. We service clients in DuPage County, Cook County, Will County, Kane County, including Naperville, Aurora, and Chicago.
