Business partner disputes can quickly threaten operations, decision-making, and the future of a company. Texas law provides various means for removing or expelling a partner in certain circumstances, but the exact mechanism depends on the business structure and governing agreement. An experienced business partnership attorney can help you understand how to force out or remove a business partner in Texas.
Common Situations That Can Lead to the Removal of a Business Partner
Business partners can develop serious disagreements over finances, management decisions, company strategy, and each person’s responsibilities. In some cases, the conduct of one partner may interfere with business operations or violate the terms of a partnership agreement.
Common situations that can lead to efforts to remove a business partner include:
- Breaches of the partnership agreement
- Misuse of company funds
- Business Fraud
- Conflicts of interest
- Breaches of fiduciary duties
- Persistent disagreements over management
- Conduct that harms the business
- Failure to perform agreed-upon responsibilities
- Unauthorized business transactions or decisions
- Misappropriation of business assets
Whether removal is possible depends on the business structure, governing documents, and circumstances surrounding the dispute.
How Business Partners Can Be Removed in Texas?
Texas has approximately 3.5 million small businesses that represent 99.8% of all state companies. In the event of a dispute, state law provides several ways to remove a partner from a general partnership. Under Texas Business Organizations Code § 152.501, the partnership agreement itself may establish grounds for expulsion. The statute also permits the remaining partners to approve an expulsion by a majority-in-interest vote under specified conditions.
Court intervention provides another potential route. A partnership or individual partner may apply for judicial expulsion under § 152.501(b)(5). A court may grant the request based on qualifying misconduct that adversely and materially affects the partnership, a willful or persistent material breach of the partnership agreement or certain duties, or partnership-related conduct that makes continuing the business with that person not reasonably practicable.
Texas Business Organizations Code § 101.107 generally prohibits the withdrawal or expulsion of an LLC member. However, an LLC’s company agreement may modify that default rule and establish circumstances and procedures for removing a member.
Why You Should Hire a Business Partnership Dispute Lawyer?
Whether your company is based in Uptown Dallas, the Houston Energy Corridor, Las Colinas, or elsewhere, you may face litigation that threatens your partnership. A 2026 survey of corporate legal departments found that 75% of surveyed Texas businesses were defendants in at least one civil court action. When you hire a business partnership dispute lawyer, you gain support from someone who understands business laws and how to manage business partnership dispute cases.
An experienced Texas business partnership dispute attorney with Massey Law can take steps to help you reach your goals in a partnership dispute. Our founding attorney has practiced law since 1994 and brings experience handling complex business litigation cases.
He is a veteran litigator who has tried more than 25 cases at both the state and federal levels and is Board Certified in Civil Trial Law. When you need exceptional legal support, you can trust our legal team to protect your interests and prepare your case for litigation and trial.
Frequently Asked Questions
How Do I Remove a Business Partner From a Company in Texas?
How you remove a business partner from a company in Texas depends on the type of company, the alleged conduct of the partner, and the applicable laws. The partnership or company agreement may provide procedures for expulsion, removal from management, or a buyout.
Texas law also provides certain mechanisms for removing partners from general partnerships. An attorney can review the business structure and governing documents to determine which options may be available.
Can I Be Forced Out of a Business Partnership in Texas?
Possibly, in Texas, You can be forced out of a business partnership under certain circumstances. The available options for removing you depend on the business structure, governing agreement, and reasons for seeking your removal.
For example, Texas law permits judicial expulsion from a general partnership when certain statutory requirements are satisfied. An LLC company agreement may also establish circumstances and procedures for expelling a member, including procedures that differ from the default rules under Texas law.
What Challenges Could I Face When Expelling a Partner in Texas?
In Texas, challenges that you could face when expelling a partner could include disagreements over whether sufficient grounds for expulsion exist, disputes over the terms of the governing agreement, and disagreements concerning the value of the partner’s ownership interest.
The partner may also contest the attempted expulsion or file a countersuit alleging breach of contract, breach of fiduciary duty, or other claims. These disputes can become particularly complicated when the parties disagree about control of the business.
How Long Does It Take to Expel a Business Partner in Texas?
In Texas, how long it takes to expel a business partner depends on the mechanism you are pursuing to remove the partner and other factors. An expulsion conducted under clearly defined provisions in a governing agreement may proceed differently from a contested court action. The complexity of the dispute, the parties’ willingness to negotiate, valuation issues, and whether litigation becomes necessary can all affect how long it takes to resolve the matter and separate the business owners.
If You Are Facing a Complex Business Partnership Dispute, Contact Massey Law Today
Whether you are removing a business partner or being pushed out of a partnership, you need legal support that gets results. The founding attorney at Massey Law is Board Certified in Civil Trial Law and a member of the American Board of Trial Advocates. He has been selected to the Texas Super Lawyers list for business litigation. Awards and ratings are not a guarantee of future outcomes. Criteria vary by organization.
When you partner with our firm, you are connected to someone who understands the law and will take the time to carefully explain your options. It is important to understand your options, and delaying action will not help your situation. Contact our dedicated team of trial-ready advocates so we can protect your rights and interests at every step.
