Having established a trail and gathered evidence, the next step is to prepare to confront the partner. Implication in theft does not nullify the partnership, and the busines partner stealing money from business accounts can still put a spoke on the business or, worse, even continue with the theft.
The safeguards depend on the extent to which the partner would react when confronted, and this in turn depends on the legal structure of the business, the extent of control the partner has on the business operations, nature of business operations, and state laws.
An LLC or a corporation with a good management team to control business operations might still function amidst the conflict among partners. A simple partnership, however, will most likely go down with the partners fighting. In a partnership structure, all partners remain liable for a loss. For instance, if one partner does not repay his share of debt, the other partner becomes liable for the same. Again, the company can face adverse consequences that arise from the criminal conduct of one of its partners. The partner can also sell his shares to a stranger, forcing you into an unplanned partnership.
A business where the partner owns the premises in his personal name or owns more than 50 percent of the business can easily cause problems for other partners. Even otherwise, the partner can refuse to cooperate and cause the business to become dysfunctional.
Taking safeguards usually requires the service of an attorney.
Image Credit: flickr.com/Wouter Kiel