There's always the option of "retiring" and requesting to be bought out. If you're desperate to leave ASAP, that's a viable option.
If you are having so many issues with your co-founder, the feeling is likely mutual. It seems as though he may be a control freak, so give him what he wants- total and absolute control.
Be honest. If you want to leave, bring it up with him privately; if he wants you to stay, he'll try to convince you to do so, but if he wants you out, he'll likely try to help you exit, either through LBO or through an outside investor. But, try to take the high road if possible. A current employee, client, or general peer may be your next business partner, so don't sneak off.
Don't go the legal loophole route if at all possible -- no one wins in the long term through method of exit, except the lawyer.
And he says "No. I don't have $500,000 in the bank to pay you off with, and the business needs every penny it has to deal with competitors". Now what does he do?
I'm not trying to be combatitive, but I'm not sure this "buy me out" or "I'll sell my share" stuff is very productive. Is there really a market for 50% of a 2MM company, sold by the 50% of the company most responsible for its technical operations? The way this guy phrased it (he doesn't think the company will survive long without him), it's hard to see how he could even do so ethically, if a market did exist. Which... I'm sure it does, just not a price he'll love.
While this is pretty good advice you also have to be prepared for your co-founder to act irrationally. I went through something similar many years ago. After a long discussion we decided to find a way for the company to buy back my shares and we'd part friends. Imagine my surprise when I came into the office the next day to find the locks had been changed and my co-founder was busy calling lawyers trying to figure out how he could screw me out of my shares.
It doesn't hurt to have any legal, financial or other documentation pertaining to the company and your part in it that you may want, or need, set aside before these discussions begin. If things do get ugly you might end up spending a lot of time and money getting them later.
Pretty much. I was able to get my personal belongings back the same day by providing copies of the lease (which I had signed) and our business license filings to the sheriffs office. An officer came down with me and convinced my partner to let me in, with the officers escort, long enough to get my belongings. Everything from that point on was handled by my attorney.
If you are having so many issues with your co-founder, the feeling is likely mutual. It seems as though he may be a control freak, so give him what he wants- total and absolute control.
Be honest. If you want to leave, bring it up with him privately; if he wants you to stay, he'll try to convince you to do so, but if he wants you out, he'll likely try to help you exit, either through LBO or through an outside investor. But, try to take the high road if possible. A current employee, client, or general peer may be your next business partner, so don't sneak off.
Don't go the legal loophole route if at all possible -- no one wins in the long term through method of exit, except the lawyer.