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We are a 50/50 partnership with me tasked to build the product and my partner to sell it.

In the year it took me to build the product - 4000 hours (and I usually charge $100.00 per hour) my partner bankrolled the venture to the tune or about $10K. He even gave me a credit card to use for company expenses.

Now, I sometimes used the company card for expenses not related to the company and reimbursed the company by purchasing corporate needs on my own credit card. Stupid, I know, but it boils down to forgetting one card, or just pulling the wrong one out at the pump, etc…

My partner is calling me on this, saying I've spend way more than I've paid back (whether you believe me or not for the sake of this post can you agree with me? ;). So, I've tallied it - he ends up owing me over $400.00…lol

More to the point, he is insisting that he handle the money moving forward. Aside from the fact that he can't insist on anything, as we're 50/50, his last business venture ended up with both him and his cousin filing bankruptcy AND being sued for fraud - as he took a check from customer, deposited it in his company account and, despite being unable to fulfill the contract for the customer, proceeded to spend the $50K in any case - embezzling the money.

Declaring bankruptcy was their only option and, if not for a loophole - a huge mistake on the other lawyers part - they would both have ended being convicted of fraud!

Now he wants to handle the money?

Advice? I'm thinking a straight-up, unbiased, 3rd party accountancy firm.

Thanks!

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You should consider whether you want to be in business with him at all. Doesn't sound like the kind of person you want handling your finances. – Mike Nov 15 '12 at 2:11
The things we learn as go along ;) You're right Mike. – Calais Nov 15 '12 at 2:41
You've partnered with someone that you know only got off the hook for fraud because of the lawyers mistake? Well, clearly you reap what you sow. – littleadv Nov 15 '12 at 3:08
If he cuts off funds to this company you have no recourse? Correct? He doesn't have to hire anyone. – JeffO Nov 15 '12 at 3:15
True - both of you. ON the first count, I believed the "mistake" story, until I had to prove and account for every penney in the last year. And no, he doesn't have to hire anyone - but if I dissolve the partnership he will have no product. – Calais Nov 15 '12 at 5:04

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