What is the name of your state (only U.S. law)?
Missouri.
Two years ago, my wife and I started a LLC with a partner, a 50/50 split of his ownership, and my wife's and my ownership. We put in more money to start this business (a brewery) - $125,000 vs his investments $50,000 and we signed on the dotted line of some SBA loans worth another $240,000.
The plan was that my partner would be in charge of operations and was listed as the sole 'Manager' on the Operating Agreement, since this is a full-time job for him, and something my wife and I would only be partially involved in as we have other jobs.
Business has just opened, and the original agreement (spoken only verbally) between my partner and I was that we would receive equal compensation for such a time until the difference of his hours, and our investment became equal. Then he would get an income independent of us for his employment of the company (originally we discussed $2500 a month).
Now that we are open, he wants to make us 'silent partners' and doesn't believe we have any rights to the business outside of silent ownership.
He intends to give himself a salary for his work, and doesn't want us to be paid anything.
Since he is listed as a 'Manager' on the Operating Agreement, and my wife and I are only Members (he is a Member as well) on a business of 50/50 ownership, does he have this right?
He won't even provide a key to the building to us.
My wife and I are considering just listing our ownership with a broker and selling it (he doesn't have the money to buy us out) since we have reached an impasse and can not work with him any longer.
What are our options? And what do we have a right to?
Any help is greatly appreciated.
Missouri.
Two years ago, my wife and I started a LLC with a partner, a 50/50 split of his ownership, and my wife's and my ownership. We put in more money to start this business (a brewery) - $125,000 vs his investments $50,000 and we signed on the dotted line of some SBA loans worth another $240,000.
The plan was that my partner would be in charge of operations and was listed as the sole 'Manager' on the Operating Agreement, since this is a full-time job for him, and something my wife and I would only be partially involved in as we have other jobs.
Business has just opened, and the original agreement (spoken only verbally) between my partner and I was that we would receive equal compensation for such a time until the difference of his hours, and our investment became equal. Then he would get an income independent of us for his employment of the company (originally we discussed $2500 a month).
Now that we are open, he wants to make us 'silent partners' and doesn't believe we have any rights to the business outside of silent ownership.
He intends to give himself a salary for his work, and doesn't want us to be paid anything.
Since he is listed as a 'Manager' on the Operating Agreement, and my wife and I are only Members (he is a Member as well) on a business of 50/50 ownership, does he have this right?
He won't even provide a key to the building to us.
My wife and I are considering just listing our ownership with a broker and selling it (he doesn't have the money to buy us out) since we have reached an impasse and can not work with him any longer.
What are our options? And what do we have a right to?
Any help is greatly appreciated.
Last edited: