Can I sue my business partner for embezzlement?

You can seek civil court action to recover any losses, including where your partner has made the business liable to a third party. Your partner’s behaviour can also be viewed as potentially criminal activity; which will amount to either fraud or embezzlement.

How do I know if my business partner is stealing?

How Can You Tell if a Business Partner is Stealing?

• Excess distributions. If your business partner is taking more money out of the business in distributions than he or she would be entitled to, this is a form of theft.
• Excess expenses.
• Sudden and unexplained changes in income.

How do I get rid of a toxic business partner?

In most cases, the non-performing partner can be ousted from the company through litigation, but this can be expensive. Another way to get rid of your partner is by negotiating a buyout. It is important to understand the rules associated with removing a business partner to protect your business interests.

How do you know if a business partner is right for you?

The Process of Choosing a Business Partner

• Find a Partner That Can Bring Skills and Experience to the Business.
• Find a Partner That Shares Your Values, Entrepreneurial Spirit, and Vision.
• Look for a Partner Without a Lot of Personal Baggage.
• Find a Partner That Can Offer Resources and Credibility to Your Business.

What happens when a business partner steals?

Accordingly, your business partner’s theft could result in jail time and damages. To prove fraud, you generally must prove that your business partner knowingly lied, you reasonably relied on the lie, and you suffered harm because of it.

Can a business owner steal from their own company?

Yes, one can embezzle money from one’s own company. Indeed that is often the case. However, embezzlement requires intent, which you didn’t have. Make this a loan from your company to you.

What to do if your partner steals from you?

What to Do if Your Spouse Stole Money From You

1. Bring the Issue Up Peacefully.
2. Seek Therapy.
3. Counseling can be the best way for both parties to open up and really talk about any problems that might have led to stealing money or lying.
4. Set Up a Separate Bank Account.
5. Get to the Real Root of the Problem.

Can my business partner force me to sell?

In most cases, a partner can force out another partner only for violating the partnership agreement or state or federal laws. If you didn’t violate the agreement or act illegally, you may nonetheless be forced out of the partnership if a court determines that the partnership should be dissolved.

How do business partners behave?

To ensure your business partnership stays on course, follow these tips.

1. Share the same values.
2. Choose a partner with complementary skills.
3. Have a track record together.
4. Clearly define each partner’s role and responsibilities.
5. Select the right business structure.
6. Put it in writing.
7. Be honest with each other.

When is a person-to-person business partnership stealing?

Regardless whether it’s person-to-person, business-to-business, or person-to-business partnership, if an individual removes any assets illegally from a business for their own personal gain, it is stealing. Below, we address different types of business theft and what to do if you suspect a business partner is stealing from you.

What to do if your business partner is a thief?

There is not much that is worse than discovering your business partner is a thief. Such an act of betrayal by a person you trust can be an extremely emotional experience. Do not allow them to take over. Now is a time to keep your head, so you will be more likely to recover damages and stolen property or money.

What to do if your business is being stolen?

Theft most often follows a pattern; if you find one, you will have part of your evidence. Put controls on all your accounts and require detailed receipts for any and all expenditures. Receipts should be from a merchant’s receipt form or automated printer with the business name and a list of purchases.

What happens if your business is the victim of theft?

With any form of business theft – the welfare of your business is at stake, both in terms of actual money, assets, confidential information and possible damages to your business and its performance.