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  1. #1
    Join Date
    Apr 2008
    Posts
    1

    Default LLC Trouble

    My question involves business law in the state of: North Carolina
    I am assuming I will need to work with an attorney but I wanted to see what kind of advice I could get from here since there is so much valuable information on this website. I have been in an LLC with a family member since 2005~ we started the company with sweat equity. I have $1000 more invested in the company then she does. I am at the point where I have taken another job and want to get out of the LLC as I dont have the time to opearate it. The account is almost at a break even point~ $18,000 was invested by them, $19,000 by me. There is now about $35,000-$36,000 in the account~ The hard work is done as it took some time to get the account built up since we used no loans, etcs. I gave the option to either buy my partner out or have them buy me out. A verbal agreement was made to buy me out but nothing was decided on as far as how much money I am getting back, no papers signed taking my name off of the business so besides her taking over my share of the work, nothing has changed. Well, last week my name was removed from the bank account and she changed the password to the bank account to block access from any charges being seen by me~ she does not think this is my business because I am not "liable" for any charges after April 1st which is when she sent me an email saying "lets have today be the end of the partnership- which I also never signed or agreed to)but in fact I am affected because she spending "our" money and can decrease the value of our liquid assests correct???? I have already given her all of the inventory, my credit card and business checks, etc etc....I was not thinking at the time as this is a family member~ another problem- we have no operating agreement. Considering the fact that we could almost both walk away and break even, I feel that it is only fair for me to get my investment back~ I am not even asking for anything above and beyond that. So after all is said and done- she will be getting a full operational business, inventory which half of my money bought that she can now sell for a profit, a website which half of my money also paid for, etc etc and will only be out somewhere betwween $6,000 and $8,000( she had about $3000-$4000 in the account to start with back in 2005). From the past 3 years, if she runs the business as we have been, she can make that "loss" back and then some during the months of sept-dec which is our busy season. First of all, is it illegal that she has blocked me from the account although there has been an agreement that should would take over although nothing has been signed over to her or agreed upon monetarliy? It was suggested to me to have our accountant create a balance sheet showing the value of the company. That is in process but with that said, after reading this, do you think it is wrong that I am asking for my enitre investment of $19,000 back. I think it is crazy for my partner to think she could get a fully operating business and not be out any money or be able to break even from day one and start seeing a profit right away. Obviously, when someone agrees to buy a business, they are considering the future potential of the company. I am furious that I have no access to see money being spent in acount in which I have $19,000 in while she is running the business and spending money on whatever she feels is necessary for the business-inventory, etc etc. HELP ME PLEASE

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: LLC Trouble

    I tried reading through that, but you lost me by not using paragraphs or trying to be concise, then losing focus starting about 1/4 of the way in. If you want to present a more focused version using paragraphs, I'll try again.

    If you don't have a buy-sell agreement and can't work things out, your essential choices are to walk away (or take less than you feel you deserve) or to go to court.

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