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50% S-Corp problems

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chaseme

Junior Member
What is the name of your state (only U.S. law)? New Jersey

I am 50% owner in an S-corp. I am the treasurer and Secretary but my partner is trying to run the business like she owns it completely. We no longer have a civilized relationship. The business is 1 year old and I have never gotten a penny from it for myself. My partner is bouncing checks left and right and Overdrawing the bank account every month. All of a sudden, there's no cash deposits going into the business account except for the small automatic debits/credits. The business mainly collects cash from customers. I believe the money is going to her personal account and she is paying bills of the business from there and telling everyone that the business is not making money and she is dipping into her own personal funds and I am not helping out. I can prove the business made money in the first 3 months of operation before she took over the finances. Also, recently my partner brought in some additional equipment into the business and when I asked about it she said it was purchased with her own money and it’s not part of the business even though they are actively used in the business.

My questions are:
1) Can I buy my partner out if she is unwilling to sell?
2) How do I determine the value of the business?
3) Does it matter how much assets each partner puts into the business if it is not written in the contract?
4) Will the assets split 50% regardless of who puts what?
5) Should there be compensation for the partner who chose the name of the business if they decide to leave the partnership and the business remains under the same name?
6) Do I have a case for embezzlement?
7) Are all the physical assets on the business premises considered part of the business if they are being used by the business? What if I did not purchase some of those equipments, will they be considered in distribution if the business dissolves?
 



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