Hartford Business Law Attorney Discusses Preventing a Former Partner from Starting a Competing Business
Many times as an experienced Hartford Business Law Attorney, I am asked, “Can I prevent my fellow partner in a partnership or LLC from leaving the business and setting up a competing business”? The answer is yes, but you need to take steps to protect yourself. Typically, with respect to an LLC, the operating agreement of the LLC will address the issue of non-compete provisions and the general exit of one member or multiple members from the business. It’s also then important to consult with a knowledgeable Hartford Business Law Attorney to work out the scope of these non-compete provisions because some are enforceable and some are not. Particularly, you need to pay attention to the scope of any geographic restrictions on the exiting member, the length in which the member is subject to a non-compete and the general terms of that non-compete provision.
Are you worried your former partner will start a competing business? Contact experienced Hartford Business Law Attorney Eric Foster for dedicated legal help.