[joystickers]

1) Taking legal action costs money. Your product hasn't launched yet so it hasn't made any money yet either. He is either going to have to sue you with his own money or find a lawyer that is willing to work on commission for a product that hasn't made a dime. I wouldn't worry about his threats.

2)It seems to me that you've been very complacent with your co-founder up to this point which is why he thinks he can bully you with such a bogus claim. You need to politely say you've had enough of the abusive relationship and you wish him the best of luck.

3)Did you sign anything for the LLC? Anyone can put anyone else's name down when they register it online, but without a signature it's meaningless. Form your own LLC or S-Corporation and start learning the biz side yourself. Articulate exactly what you think you need a biz person for and start doing what you can. You'll get a better understanding of the expectations you'll have for the next guy, who may end up being an employee instead of a co-founder.

Good luck!