What Can I Do If My Business Partner Is Stealing Money in Georgia?
You open the business account and money is missing.
Your partner refuses to show you financial records. Customer payments are being collected but never deposited. Company funds are paying personal expenses. Or the numbers simply do not add up.
If you suspect your business partner is stealing or misusing company money in Georgia, resist the urge to immediately retaliate.
What you do next can significantly affect your ability to protect yourself and the company.
1. Preserve the Evidence
Start preserving records that you lawfully have access to.
Potentially relevant evidence may include:
- Bank statements
- Accounting records
- Invoices
- Payment processor records
- Contracts
- Emails and text messages
- Financial statements
- Corporate records
Do not alter documents or improperly access accounts or information you are not legally entitled to access.
2. Review Your Operating or Partnership Agreement
Your governing documents can be extremely important.
Review any operating agreement, partnership agreement, shareholder agreement, bylaws, buy-sell agreement, or other ownership documents.
These documents may establish who controls finances, who has management authority, how distributions work, what records owners can access, and how disputes must be handled.
3. Don't Automatically Drain the Bank Account
Discovering missing money can create an immediate reaction:
“I'm taking the rest before they do.”
That may create additional legal problems.
Before transferring substantial company assets, changing access, terminating an owner, or taking another major unilateral action, obtain legal advice.
4. Determine How Much Money Is Actually Missing
Suspicions need to become evidence.
Depending on the size and complexity of the business, determining what happened may require reviewing bank statements, accounting records, transfers, customer payments, distributions, and expenses.
More complicated cases may require accounting or financial professionals.
5. Can I Demand the Company's Books and Records?
Depending on the entity, governing documents, applicable Georgia law, and circumstances, an owner may have rights relating to company information and records.
If another owner refuses to provide financial information, a Georgia business dispute attorney can evaluate your rights and determine whether a formal records demand or other action is appropriate.
6. Can I Sue My Business Partner?
Potential claims and remedies depend heavily on what actually occurred.
Business ownership disputes may involve contractual obligations, fiduciary duties, fraud allegations, accounting issues, misuse of company assets, or other legal claims.
The best outcome is not always a courtroom judgment.
Depending on the circumstances, the appropriate strategy could involve negotiation, a buyout, separation of the owners, dissolution, emergency relief, or litigation.
The Earlier You Address It, the Better
When money is disappearing from a business, waiting can make the situation worse.
Records can disappear. More money can be moved. Customer relationships can be affected. Debts can accumulate.
Speak With a Georgia Business Litigation Attorney
The Walter Law Group represents Georgia entrepreneurs and business owners in partnership disputes, ownership disputes, contract disputes, and commercial litigation.
If someone is threatening the business you worked to build, you need a strategy—not just an angry email.
Frequently Asked Questions About Georgia Business Partner Disputes
Can my business partner legally take money from the company account?
That depends on the ownership structure, governing documents, purpose of the transaction, authority of the owner, and other circumstances.
What if my partner refuses to give me bank statements?
Your rights depend on the business entity and applicable law. An attorney can evaluate your rights to company records and potential methods of obtaining them.
Can I remove my business partner from an LLC?
Removing an LLC member is not necessarily as simple as changing access to the company. The operating agreement and applicable Georgia law should be reviewed first.
Should I confront my partner before hiring an attorney?
Sometimes early communication makes sense; sometimes it can cause evidence or assets to disappear. Obtaining legal advice before revealing your strategy may be prudent.
This article provides general information and does not constitute legal advice.
