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Removing a business partner can be challenging, especially if your agreement lacks clear provisions for such actions. Generally, state law governs these situations, and it is advisable to consult with an attorney to understand what's permitted. Under LLC and partnership acts, partners are co-owners and cannot simply be expelled from the company. However, a well-crafted LLC agreement may include mechanisms for removing a member or altering their status from voting member to just an economic interest holder. This emphasizes the importance of proper planning and drafting of agreements prior to starting the business. Many frustrations arise when individuals want to remove a partner without having established these provisions.
