So I decided to pay him out with an equity buyout and get rid of him from the company. Legally this isn't really required because there are no articles or operating agreements in the company, and the company has no equity structure either. Practically we made up a definition of equity to pay him out, because the company didn't have one. What ended up happening is that the company would pay all the liabilities and not deduct it as a lability from the partnership, whilst giving him a straight 50% or more in disbursements per pay cycle