Hi all, just need some advice please.

I was a web developer for a travel agent which went into administration. So about 2-3 year ago I went it alone building websites for companies. During that time a local web development company was outsourcing work to me because they didn't have the skills to do it. At the time I was doing the outsourcing work I also had a good contract with another travel agent, because of this I wasn't available all the time to do the outsourcing work. The other web company were about to take on a large outsourcing contract with a marketing company which was worth about 30k a year, so between us we setup a new company with us both as directors. I was to do the development work and he was to do the design, interactive CD's and static websites. For the last 9 months the business has been going well, and we estimate a turnover of around 100-120k by the end of the year.

During the course of the 9 month we've been working together, I've spent most of my time working on work passed over from the marketing company contract, while also doing work on other contracts too.

Anyway, I've just got back off honeymoon and now by business partner is telling me he's earning less money now but doing more work (even though I'm project managing half of the work we have). He still has his old company registered, and wants us to work as 2 seperate departments within the company, with us getting all the money from the projects we do. Where as at the minute we've been taking a set wage each month.

Apparently part of the reason he want's to do this is so that his old company can invoice our new company for his time. He says he has debt with his old company, and needs to start putting money through his bank account so that the bank don't close his account and ask for the money to be paid back. He also says he want's to manage his clients his way, wants to take time off when he want's and doesn't want to have to run things by someone else before his does something etc.

I've pondered over this all day, and I can't think why we're at this point. Most months the work I do is worth more to the company than the work he does, one month I invoices 9.5k and he invoiced 2k. So in my opinion we'd be better off together.

He wants to keep our new company going, and put all business through it. He thinks because there are 2 of us, it looks more professional and it'll help get more business, but on the other hand he wants to manage his side of the business as he pleases, which I think has come about because I have suggested we put more procedures in place, i.e. planning projects properly and creating proper development documentation (briefs etc), but it seems he doesn't want to do that.

So the question....I'm struggling to work out what I should do next. I've gone from working at home to working in a lovely office, an increase in pay, and I've worked on projects for companies like Capita, Peppadew, Birmingham City Football Club and Jack Daniels.

My business partners says that the marketing company we have the contract with is my client (he can't do the work anyway), so if we were to still work together then I'd get everything from that company.

So am I best...

1) Agreeing to what he wants, and using the image we have to attract more new business, running the risk that at any point he could decide to walk away taking his clients and leaving me with one big one, which if that client decided to leave I'd be stuffed.
or
2) Take the one client I have, start back up on my own again getting a smaller office, and running the business how I want it to be ran?

When we went into business together, I was worried this would happen, so I ensured we had the same goals. But it seems his goal is to manage himself while having the image of having multiple people working for the business.

I'd be grateful for any advice on this one....thanks.