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You'll want to read business books and consult a lawyer. Figure out what your options are. Dissolve the company, buy him out, get bought out, etc. A lawyer can

by fleitz 16y ago

You'll want to read business books and consult a lawyer. Figure out what your options are. Dissolve the company, buy him out, get bought out, etc. A lawyer can best advise you on these matters, also did you assign your IP to the company? If not as others have suggested, just change the name on the door as the code is yours (or, your employers if you didn't get that sorted out). Also, consult a lawyer as there may be implicit agreements present, or legal obligations you are unaware of. Don't cut and run just because you are the tech guy and he is the biz guy. Figure out the business side of things and get the guy out of YOUR company. It's not going to be the first time you'll have to get someone out of your company who has equity. This is a valuable opportunity to learn how to do this. If your site sucks, change it. I assume as tech guy you've got control of the DNS records? Stop asking for permission, and start taking control of your life and your business.

andreyf 16y ago
This might have been assumed, but it's worth reiterating that this could get really stressful and distracting for your business. To avoid that, you should do everything in your power to leave on good terms with him. First, talk to him in a non-confrontational way: ask him if there's anything that's getting in the way of his giving the project more attention. Politely let him know that you expect more of him, as a business partner, and see if he steps up. Set a concrete but reasonable goal date (I'd do about a month from now), and on that day, decide if you want to keep working with him for the next year or not. If you leave, suggest getting back together after he has a chance be more focused/organized/whatever. I wouldn't bring lawyers into something like this until the very end, as they can put a very grim aura on the conversation. Have a heart-to-heart, figure out what you want, what he wants, and how both of you can be satisfied. Once you're sure of that, see a lawyer about making a legally binding agreement.
- keefe 16y ago
  It's OK to be confrontational to a certain degree. He doesn't sound like the indispensable kind of co founder and would be in rough shape without OP, who is therefore in a position of power.
  - andreyf 16y ago
    Power best unused, for the good of the customers, if no one else. One sincere but difficult conversation can substitute for months of fighting, stress, and legal threats. The ideal break-up, if one can't be avoided, would be to part ways amicably and get back to work.
    - keefe 16y ago
      yes certainly nothing to the degree of fighting/stress/legal threats but op should be assertive in the initial conversation imho
cletus 16y ago
You're jumping the gun here. Two prerequisites must be met before you consult a lawyer: 1. You've exhausted all other options; and 2. You decided that what you're fighting for has enough monetary value to justify the time and money you'll spend exploring and pursuing legal remedy. Of course it's worth knowing your position. If you have no contract it's a mess. If you don't have founder vesting it's a mess. He can walk away with half but then again so can you. You can take the lack of such formalities as pretext: say to your cofounder you meed some structure. Say you need founder vesting and clear division of responsibilities. Make yourself CEO and then you can decide who designs the website. If necessary you can fire him then (without cause he'll still end up with a piece but that can be better than half). Or simply talk to him about your grievances and concerns. If those conversations fail just wAlk away.
- SkyMarshal 16y ago
  1. You've exhausted all other options; and Many times it's worth consulting a lawyer earlier rather than later, as such a consultation can do all sorts of things for you - eliminate options you might have otherwise wasted time pursuing, illuminate options you weren't aware of, and also keep you from making any mistakes that could come back to hurt you later. That last point is most important and most overlooked by non-lawyers, I think. I've learned from friends who have learned the hard way that in disputes like this involving money or business, it's crucial you know the applicable law from the outset and adhere to it, even if you only intend a legal solution as the absolute last resort. If it does come to that, your case is strongly bolstered in court if you can show that you were aware of the applicable law and diligently followed it from the outset. For example, if your adversary in court broke the law, and then you broke it too to counteract him, the court will look unfavorably on both. Two wrongs do not make a right, especially in the eyes of courts. So it's worth positioning yourself from the beginning of any such dispute as completely in compliance with legal requirements. If you don't know what those requirements are, an early consultation with a lawyer could be valuable. PS - it's also less stressful to simply rely on the law to guide your decisions in this uncharted territory, rather than trying to make it up as you go. Don't reinvent the wheel here, instead leverage the hundreds/thousands of years of codified dispute resolution and legal theory.

by fleitz 16y ago

andreyf 16y ago

This might have been assumed, but it's worth reiterating that this could get really stressful and distracting for your business. To avoid that, you should do everything in your power to leave on good terms with him. First, talk to him in a non-confrontational way: ask him if there's anything that's getting in the way of his giving the project more attention. Politely let him know that you expect more of him, as a business partner, and see if he steps up. Set a concrete but reasonable goal date (I'd do about a month from now), and on that day, decide if you want to keep working with him for the next year or not. If you leave, suggest getting back together after he has a chance be more focused/organized/whatever. I wouldn't bring lawyers into something like this until the very end, as they can put a very grim aura on the conversation. Have a heart-to-heart, figure out what you want, what he wants, and how both of you can be satisfied. Once you're sure of that, see a lawyer about making a legally binding agreement.

keefe 16y ago
It's OK to be confrontational to a certain degree. He doesn't sound like the indispensable kind of co founder and would be in rough shape without OP, who is therefore in a position of power.
- andreyf 16y ago
  Power best unused, for the good of the customers, if no one else. One sincere but difficult conversation can substitute for months of fighting, stress, and legal threats. The ideal break-up, if one can't be avoided, would be to part ways amicably and get back to work.
  - keefe 16y ago
    yes certainly nothing to the degree of fighting/stress/legal threats but op should be assertive in the initial conversation imho

cletus 16y ago

You're jumping the gun here. Two prerequisites must be met before you consult a lawyer: 1. You've exhausted all other options; and 2. You decided that what you're fighting for has enough monetary value to justify the time and money you'll spend exploring and pursuing legal remedy. Of course it's worth knowing your position. If you have no contract it's a mess. If you don't have founder vesting it's a mess. He can walk away with half but then again so can you. You can take the lack of such formalities as pretext: say to your cofounder you meed some structure. Say you need founder vesting and clear division of responsibilities. Make yourself CEO and then you can decide who designs the website. If necessary you can fire him then (without cause he'll still end up with a piece but that can be better than half). Or simply talk to him about your grievances and concerns. If those conversations fail just wAlk away.

SkyMarshal 16y ago
1. You've exhausted all other options; and Many times it's worth consulting a lawyer earlier rather than later, as such a consultation can do all sorts of things for you - eliminate options you might have otherwise wasted time pursuing, illuminate options you weren't aware of, and also keep you from making any mistakes that could come back to hurt you later. That last point is most important and most overlooked by non-lawyers, I think. I've learned from friends who have learned the hard way that in disputes like this involving money or business, it's crucial you know the applicable law from the outset and adhere to it, even if you only intend a legal solution as the absolute last resort. If it does come to that, your case is strongly bolstered in court if you can show that you were aware of the applicable law and diligently followed it from the outset. For example, if your adversary in court broke the law, and then you broke it too to counteract him, the court will look unfavorably on both. Two wrongs do not make a right, especially in the eyes of courts. So it's worth positioning yourself from the beginning of any such dispute as completely in compliance with legal requirements. If you don't know what those requirements are, an early consultation with a lawyer could be valuable. PS - it's also less stressful to simply rely on the law to guide your decisions in this uncharted territory, rather than trying to make it up as you go. Don't reinvent the wheel here, instead leverage the hundreds/thousands of years of codified dispute resolution and legal theory.