May I continue using a business name if one of my partners has disassociated herself from the business?
Question Details:
I was starting a business with 2 partners. We chose a business name then one partner decided she no longer wanted to be involved. She says we are not able to continue using the business name. The name was her husband's idea. I spent a lot of money and over 38 hours designing a logo, setting up a website, business cards, phone, email etc. The name was never copyrighted and we have finished the incorporation paperwork. Would my partner and I still be able to move forward using this name? We had no contract between us. The majority of money spent has been out of my pocket.
If you have finished the incorporation paperwork, it the busienss now incorporated? If the busienss is now incorporated, the shareholders of this corporate business now own the the name of the corporation and the logo unless there is a written agreement to the contrary.
If you have written and approved bylaws concerning the corporation that you have written about, you need to carefully read the bylaws as to how to remove the one "partner" as a shareholder in the venture and pay her the value her shares of stock are presently worth in the business.
If you have not incorporated your business, I would do so as soon as possible. In California, there is the presumption that the name of a corporation is owned by the shareholders of the particular corporation. Perhaps your state may have a similar statute.
You should also consult with a business attorney about your situation.
