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by Strong Eagle » Wed, 01 Jul 2015 8:44 pm
I don't get it. How can 'we' be a sole proprietorship? For an SP, exactly one person registers the business, and the profit/loss from that business is reported on that person's personal income tax form. Under the law, that one SOLE PROPRIETOR has complete and total control over the business, and complete legal responsibility to ensure the business operates legally. There is no 'we'.
So, one of you owns the business and two of you are employees of the business... that is the only way it can be under a SP.
If the guy who won't work owns the business and has registered it, you are completely out of luck because you work for him. But if you or your other partner have registered the SP, then you can do a couple of things.
a) Terminate the person. He may sue you to get his investment back. It really depends on what kind of written agreements you have with each other and whether or not they can be enforced. In the absence of any written agreements, it might be hard for the person who is not working out to win.
b) Terminate the business and start anew with a new SP, LLP, LLC, or Pte Ltd and leave out the third person when you start the new business. Again, you might get sued for return of investment... or you can come up with some sort of 'deal' to return partial funds to make him go away.
But, if the person you are complaining about is the one that registered and owns the SP, you are sh*t out of luck.