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What's a fair share to give someone in a company that was going to be a partner at one point? I no longer want them as a partner because they didn't have what it takes to add the value I was expecting.

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I brought him in at the beginning of the business. I had all the ideas and information. I brought him in with the intention that he would get me an investor. I was willing to give him up to 30% depending on how good of an investor he got. He got nothing and all he did was help me put together a financial forecast. That's all.

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I don't think it will help you much to find out what we in the OnStartup community think is a fair share for your partner. What will matter is what your partner thinks is a fair share. You got in bed with him with the LLC filing and you have to work from where you are. You are caught up in what he "deserves". That is irrelevant at this point. You have to ask yourself, what is it worth to me to get him out? 3% may be a bargain when you consider it that way.

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Very good way of putting it. +1 – Nick Pascucci Jan 25 '11 at 4:47
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From the sound of it, he didn't really contribute anything; therefore, you don't need to give him anything in return. It may be a good idea to offer to buy his contribution from him and discuss what he thinks would be a fair trade, while maintaining control of(Be sure that you fulfill any contractual obligations you have, and make sure that you have documentation that your ideas really are yours so you can insure yourself against any nastiness they may bring about as a result of your cutting them off.)

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Thanks...its a little more complicated than that...He and I are organizers under the LLC we applied for...we do not have a operational agreement... But to him a fair trade is 3% in the business, which can potentially add up ot a lot of money...i am not a greedy person, i just dont believe he deserves it...Anyway, thanks for your time... – user6782 Jan 24 '11 at 2:50
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Ah - do I get this right, you already gave him 50% and now want to go back? Or... what percentage of the LLC does he own? – NetTecture Jan 24 '11 at 7:13
@jay - If you can't come to terms with him then just form another company/LLC. – TimJ♦ Jan 24 '11 at 15:41
@nettecture i never gave him anything..we do not have an operational agreement...the understanding was that he get us an investor and perform well, and i may give him up to 40% if he did all that...but he didnt... – user6782 Jan 24 '11 at 16:29
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You're quibbling over 3%? Give him the percentage in shares and dilute him later. – Nick Pascucci Jan 24 '11 at 19:44
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