Partner withdraws money from the business: what should the owner do in Florida

Grant Law - News - Partner withdraws money from the business: what should the owner do in Florida

May 28, 2026

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In business, such situations almost always start unnoticed: strange transfers, “temporary” expenses, lack of proper reports. Over time, it becomes clear — the company’s money is being misused.

In Florida, such disputes fall under the category of business conflicts and are often viewed as a breach of partner duties and, in some cases, as theft of funds.

When a partner’s actions become illegal

A partner in an LLC or other business structure is required to act in the company’s best interests. This is a fiduciary duty — a fundamental rule of business relations.

Theft or misappropriation of funds

If the company’s money is used for personal purposes without consent, it may fall under Florida’s theft law (§ 812.014).

Liability depends on the amount:

  • from $750 — it is already a criminal offense;
  • large amounts — serious categories of criminal liability.

Civil theft

Separately, Florida has a civil claim (§ 772.11) that allows:

  • to recover triple the amount of damages;
  • to obtain compensation for attorney fees.

However, before filing a lawsuit, a written demand for the return of funds must be sent. If the money is returned within 30 days, legal proceedings may not commence.

Breach of partner duties

In an LLC, a member is required to:

  • act in good faith;
  • not use company assets for personal purposes;
  • not conceal income.

Violating these rules provides grounds for a civil lawsuit.

What to do if you suspect money misappropriation

1. Document the facts
It is important to calmly gather:

  • bank statements;
  • accounting records;
  • correspondence;
  • internal documents.

A financial specialist is often involved to analyze the flow of funds.

2. Consult a business dispute attorney in Florida
Evaluate:

  • the agreement between partners;
  • the company structure;
  • potential claims and business defenses;
  • the risk of criminal charges.

3. Send a written demand
This is a mandatory step before filing a civil theft claim. Sometimes the conflict can be resolved at this stage.

4. Legal protection
If the money is not returned, lawsuits are filed:

  • civil theft;
  • breach of partner duties;
  • unjust enrichment.

The court may also temporarily restrict access to the company’s accounts.

5. Expulsion of the partner
A court in Florida can expel a member from the business if their actions harm the company or make collaboration impossible.

Consequences for the partner

  • return of funds;
  • triple compensation in a civil claim;
  • criminal liability;
  • loss of business share;
  • prohibition on managing the company.

How to protect the business in advance

The most effective measures include:

  • detailed agreements between partners;
  • clear rules for access to accounts;
  • dual approval for large payments;
  • regular financial audits.

Such situations always require precise and prompt actions. The sooner a business dispute attorney in Florida is involved, the higher the chance of recovering funds and preserving the business.

If you suspect money misappropriation from the business or have already encountered a conflict between partners — you can discuss the situation in a consultation at Grant Law Corporation and understand the real legal steps for your case.