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Removing a business partner from a company can be challenging, especially in the absence of clear provisions in your agreement. It’s essential to consult an attorney familiar with your state laws regarding this process. Generally, due to LLC and partnership regulations, you cannot simply expel a partner, as they have ownership rights in the business. However, a well-drafted LLC agreement may include mechanisms to remove members or downgrade their status to an economic interest holder. This underscores the importance of proactive planning when forming a business; often, we receive calls from individuals frustrated with their partners who realize too late that their initial agreements were inadequate.
