Thank you for your response! Yeah there really isn't much to buy. If we dissolved the corporation and liquidated our assets (which consist of some books, fabric, sewing machine and a sewing table) we would probably get at most $2000, and even that's generous. So she might walk away with $1000 (probably less) in assets if we just got rid of the corporation right now. I did meet with an attorney today and he felt very strongly that the only thing I should offer her is to buy out her shares based on the money she's invested (which is around $1300) but he also felt that dissolving the corp. and moving forward as a new business entity might be the easiest way to go. Right now the only thing holding me back is not wanting to ruin the friendship. I'm still figuring out the best thing to do. I put together an offer for buying out the $1300 plus interest, to be paid in monthly installments once the business begins generating a profit, as well as a bonus amount of no more than $3600 or 10% of my compensation for three years once I'm generating a profit, as well as a one-time $10,000 bonus IF the company generates more than 1 million in sales within the first three years (which is probably never going to happen). I feel like that's more than fair, but it's much less than what she'd wanted. Anyway, thanks for your input!