If I am a partner in a LLC, can the other partner legally fire me from the company?

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If I am a partner in a LLC, can the other partner legally fire me from the company?

I am a partner in a LLC formed by myself and my partner. My partner put forth all of the start-up funds for the business, I was unable to make any financial contribution, however I have contributed in many other areas of the business start-up. My partner and I continue to argue over decisions regarding the business and she told me that I’m out as of today. I need to know my legal rights and if I have any at all.

Asked on June 21, 2011 under Business Law, Pennsylvania

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

I fear that I know the answer to this question already but do you have a written partnership agreement in place?  An operating agreement for the LLC?  If the answer  - I hope - is yes then look to the agreement.  It will be binding on both of you.  If you have no written agreement in place not all is hopeless.  You have an oral agreement which as long as it does not violate what is known as the statute of frauds in your state (a law that states that certain agreements must be in writing), then you can prove the agreement through testimony.  I would absolutely NOT leave the business.  Tell her you have an oral agreement and she does not have the legal right to terminate the agreement in this way.  That it would be a breach.  Then I would seek some legal consultation in your area as to your next step.  Maybe a buy out? Good luck. 


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