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Intellectual Property
I am in business as a DBA, 1 partner is going to buy me out.

I am in business as a DBA, 1 partner is going to buy me out.

Full question:

I am in business as a DBA, 1 partner is going to buy me out, but it is taking much longer than it should and his buy out terms are not acceptable to me.The question is, my partner has already started a LLC with the same name as the DBA, with his new partners on the LLC, they are curently doing business under the LLC.I would think that this would be illegal, some sort of faurd? Am I wrong, I would love to use this to get more on the buy out and speed it up.ThanksEd

Category: Intellectual Property
Date: 04/07/2025
State: California

Answer:

We cannot give legal advice. The following is not a substitute for the advice of a local attorney. But we hope the information will be useful.

You may have a case of service mark and/or trademark infringement against your former partner. Complicating this question is the fact that he was your partner and was also presumably using the mark (the mark being the name of the business). You may also (or in the alternative) have a simple breach of contract claim against your former partner.

For more details, see our information at these links:

http://definitions.uslegal.com/s/service-marks/

http://definitions.uslegal.com/t/trademarks/

You are in a situation where the advice of a local attorney is important. You need to consult a local attorney, meet, and discuss your options. You can scale up your efforts depending on your former partner's reaction to an escalating series of communications. For example, first you could ask your attorney to write a letter to your former partner, trying to resolve the situation. If that doesn't work, you could ask for another letter, this time more forceful and threatening to sue. Lastly, you could actually sue.

The letters will not cost you much, a lawsuit would cost much more. Contact a local attorney and schedule a sit-down with him/her to review your options and a way to proceed that will start out costing you as little as possible.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

How to calculate a buyout of a business partner?

To calculate a buyout of a business partner, start by determining the fair market value of the business. This can involve assessing assets, liabilities, and earnings. Next, consider any agreements in place regarding buyouts, as they may specify a formula or method. You can also factor in the partner's contributions and any goodwill associated with the business. It's advisable to consult a financial advisor or attorney to ensure a fair valuation and to follow legal requirements.

How much do I ask for a buyout on a business partner?

The amount to ask for a buyout depends on the business's fair market value and any agreements between partners. Consider the business's assets, liabilities, and potential earnings. If there are existing contracts outlining buyout terms, refer to those. It may be beneficial to consult with a financial advisor or attorney to help determine a reasonable figure based on these factors.

What if my business partner wants to buy me out?

If your business partner wants to buy you out, review any partnership agreements that outline the buyout process. Discuss the terms, including valuation and payment methods. It's important to negotiate a fair price based on the business's value. Consulting with an attorney can help ensure that your rights are protected and that the process complies with legal standards.

Can you have a partnership with a DBA?

Yes, you can have a partnership with a DBA (Doing Business As). A DBA allows a business to operate under a name different from its legal name. However, all partners should agree on the use of the DBA and ensure it is registered properly. It's important to clarify roles, responsibilities, and how profits and losses will be shared among partners in any partnership agreement.

How much should I ask for a buyout?

The amount you should ask for a buyout should reflect the fair market value of the business. Consider assets, liabilities, and any agreements that may dictate the buyout terms. It's also wise to factor in the business's goodwill and future earnings potential. Consulting with a financial advisor or attorney can provide guidance on determining a fair and reasonable buyout amount.

Can a business buyout a partner?

Yes, a business can buy out a partner. The buyout process typically involves determining the partner's share of the business's value and negotiating terms for the buyout. This process should follow any existing partnership agreements that outline how buyouts should be handled. It's advisable to consult with an attorney to ensure that the buyout complies with legal requirements and protects all parties involved.