I came up with an idea on my own and offered half of the business to a (then) friend. What happens if I decide not to give the other guy half after all?

AAnonymous ·September 1, 2014 ·7 answers

I came up with an idea on my own and offered half of the business to a (then) friend, thinking we’d build it together. Things have changed and we’re kind of on the outs. Both the idea and execution (development, design) were totally me. What happens if I decide not to give the other guy half after all?

I offered him a stake in the company because: (a) I ran the idea by him to check the temperature and he sounded excited about it, and (b) I’m way too giving.
The idea, development and design have been completed (or funded) entirely by me.
Partner isn’t a total ass, but we don’t often see eye to eye and I’m worried about the long-term sustainability of this arrangement.
Partner and I created an LLC separately (no non-competes included) which was going to be the parent company for the product as well as a consultancy. We’ve done consulting under the LLC already, but haven’t made any written agreements with regard to the aforementioned idea. All other activity under the LLC will cease once a few projects are wrapped up (expected in 2-3 months).

7 answers from the community

AAnonymous· Sep 1, 2014

Gather what proof he could present showing that you didn't fulfill your commitment, go see a lawyer if you want more insurance and as soon as you feel confortable, do what you want.

AAnonymous· Sep 1, 2014

I'm not sure about the LLC aspect of it. But in general, ideas are worth nothing, the work and time is where equity comes from. And it sounds like you did all the work, which means you have 100% ownership.

But, like I said, not sure about the LLC. For instance, I've heard that any work done on your employer's time or on your employer's equipment is owned by the employer. Not sure how to extrapolate that to your situation.

AAnonymous· Sep 2, 2014

"Ideas are worth nothing"

The law may not agree with your assessment. There have been many cases where the ownership of businesses have been litigated over who came up with an idea. Morally it may be worth nothing, but legally I'm not so sure.

Mostly it depends on whether you made anything in writing. And if you have what the conditions were and if they were met by your friend. Its a very touchy topic and I would recommend seeking legal advice - even pseudo legal ones like JustAnswer, LawGuru and Avvo.

AAnonymous· Sep 2, 2014

I wouldn't worry about it. I hope your idea will be wildly successful and then you'll have the funds to really deal with it but likely, and unfortunately, it could go no where or be a minor success and at that point you don't want to deal with the legalities of this and get in the whole when you have no real company.

If nothing is in writing don't sweat it.

AAnonymous· Sep 2, 2014

*hole

AAnonymous· Sep 2, 2014

+1 **hole

AAnonymous· Sep 4, 2014

Bad karma isn't something that you want to carry around with you. It's real.

Confront your friend now about your thoughts and cut him loose.

I came up with an idea on my own and offered half of the business to a (then) friend. What happens if I decide not to give the other guy half after all?

7 answers from the community

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