Yikes! That is going to make for one awkward family gathering during the holidays. You can close the credit card account if you haven't already. Then you might have a business attorney review any written agreements to see if you have additional recourse. Probably the best thing you can do is learn the lesson of doing business with family. Dr. Lorrie Klein

cj1313 - I'm sorry to hear that you're in this situation. Skin-Care makes a good point about closing the credit card account. Unfortunately, we hear from lots of business owners that find themselves in bad partnership arrangements. This article may help you think through some of your legal options: How to Avoid a Bad Business Partnership - And What To Do If You Find Yourself In One It can be difficult to work out legal arrangements with family members, but you may want to consider consulting a small business attorney. Here are some tips on finding good legal representation. Good luck, and please keep us posted on your situation! I hope you find some resolution quickly. Message Edited by NicoleD on 10-27-2009 09:09 PM

I would cut off their credit card simple, if they are not putting into the business then they are ceasing to be partners. Did you have them sign anything when they invested? Is there any legal documentations? Did you sign a partnership agreement? These are IMPORTANT things wether you are a corporation on any other legal form of a business. If say they did not sign any paperwork, then honestly, there is no legal proof, thay they invested in your company, and what they are doing is theft. Since its famiy. My suggestion. Cut their card off, they will soon relize that something is amiss, and try to contact you, when they do, simply explain their duties and contributations to the company, they are not meeting their end of their obligations to you and your company. Explain that it is just business, and they are cutting into your expansion or development. I am sure they will understand, if you explain it properly. Otherwise, honestly, you have to get rid of the dead wood. I respect all the partners I have ever had, but once they cease performing as a partner, and do not live up to their end of their business obligation, they are no longer a partner and not entittled to use any money or profit from the company. Long story short, learn from this experience, have any partners, investors, free lance talent, etc sign documentation. Its a trial and tribulation to get all of this stuff together, but you will be thanking your stars when you avoid situations like this in the future, when you are making MORE money, and are dealing with larger sums.