Philadelphia, PA asked in Business Formation for Pennsylvania

Q: Can I let go of partners from a start up if operating agrmnt isnt in place?

I put the team together in October, came up with the idea, we all signed NDAs, but now they are asking more equity than id like to give. They signed non-competes, can I choose to not work with them? Will they have any grounds to claim the company. Currently while the LLC is being approved at the state, I am the only listed owner. We were going to sign an operating agreement splitting equity as agreed, but then one partner wants to take more, and I do not agree with him. I also found better replacements for the other partner. Am I bound to working with them through NDAs and Non-competes?

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1 Lawyer Answer
Peter N. Munsing
Peter N. Munsing
  • Wyomissing, PA
  • Licensed in Pennsylvania

A: You may be OK but you really need the advice of a partnership expert. I suggest Ken Milner--give him a call. Tell him I suggested you call. Because of implied obligations etc. it's not something anyone can give you an easy yes/no on.

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