[Big Mac]

Scenario: Last year one of my business partners decided to fully relinquish his percentage interest in my company in order to form his own. He received his share of the profits and departed as per our operating agreement. Now it's tax time, and he has told me that after talking to people, he doesn't think he should be responsible for any of the tax preparation accountant fees for that period of the business since he no longer has any part of my company. My position is that since he gained a percentage of the profits during the partnership, he should still be responsible for that percentage of the accountant fees through said period. (The accounting for my business is cleanly split so that the former partner would only be responsible for the accounting fees during the period he was a partner.) Unfortunately, although I created a fairly detailed and binding operating agreement, I failed to take this contingency into account (mostly because of my naive expectation that the partnership would endure).

Question: Without examining my operating agreement, which to my knowledge does not address the issue, what legal opinion would you give?

[residentEvil]

if he/she is to get any money from the tax return for the period he/she was involved then there needs to be payment.

if he/she has to pay for that same period then you should sue because they must have been doing some shady business

uhm anyway. if you were partners for any period of time then all fees should be shared. all credits should be shared. all debt should be shared. common sense. that may not hold up in court but it was should be done. if the partner refuses cut your losses now and don't bring up the business with him/her again.

[mac128k-1984]

I'm no lawyer but I do play one on tv: lol:

Here's my $.02. You cashed him out which means you've absolved him of all responsibilities, including any liabilities, taxes, and law suits. You cannot go back now (imo) and say oh yeah I forgot about these charges which by the way are occuring in 07 when you weren't a partner.

Like I said, I'm no lawyer but I do suggest that you get one and talk it over with them. what the folks here at 'NN (lawyers or not) cannot see the big picture and any mitigating circumstances.

[Big Mac]

Thank you very much, for the input, rE. I obviously agree with you. And thank you for your opinion, mac128k. I respectfully disagree with your position because these were fees incurred while the partnership was in effect, and both of us knew there would be accounting fees for that period.

[Buckaroo]

I agree with mac128k-1984. It's like a company that buys out another company, along with all the profits, they also gain the liabilities. You split up and ended up with what was left.

Oh, and I'm not a lawyer either, pretend or real.

What on earth lawyer does Mac12k play on TV? Is this CourtTV?

[turtle777]

Originally Posted by mac128k-1984 

I'm no lawyer but I do play one on tv: lol:

Play ?

Is that what you call it when you are in front of Judge Judy ?

-t

[Captain Obvious]

Where's all the, "I hate attorneys" posts now?

[turtle777]

Originally Posted by Captain Obvious 

Where's all the, "I hate attorneys" posts now?

Just wait. Once he decided to go the attorney route, he will figure out that it would cost him 10 times to pursue it in court. So he might as well swollow the cost.

-t

[Big Mac]

Originally Posted by turtle777 

Just wait. Once he decided to go the attorney route, he will figure out that it would cost him 10 times to pursue it in court. So he might as well swollow the cost.

-t

Well, our operating agreement specifies arbitration. But you're probably right - even a consultation would probably be counterproductive in terms of cost. I'll only try the legal route if his unpaid end of the fees are excessive. Otherwise, it's just a lesson learned.