What is the name of your state? Chicago, IL
2 years ago I began a small tech startup as an LLC with 2 other individuals. Per my agreement, I received a regular salary and a 5% share of the business.
For various reasons, the business is now dissolving. I was told (by 2 others) that my interest in the company was generally nullified because I was classified as a 5% "interest holder" not a 5% "owner".
Digging deeper, I learned that my name is not documented as a member of the LLC anywhere. I trusted the other 2 (my mistake). However, I have been paying Fed/State taxes as an owner each quarter.
3 questions:
Can the other 2 simply take away my 5%?
Should the amount in taxes I paid have been relative to my degree of ownership (5%)?
Should I have been paying taxes as an owner at all given my undocumented "interest holder" status?
Thanks
2 years ago I began a small tech startup as an LLC with 2 other individuals. Per my agreement, I received a regular salary and a 5% share of the business.
For various reasons, the business is now dissolving. I was told (by 2 others) that my interest in the company was generally nullified because I was classified as a 5% "interest holder" not a 5% "owner".
Digging deeper, I learned that my name is not documented as a member of the LLC anywhere. I trusted the other 2 (my mistake). However, I have been paying Fed/State taxes as an owner each quarter.
3 questions:
Can the other 2 simply take away my 5%?
Should the amount in taxes I paid have been relative to my degree of ownership (5%)?
Should I have been paying taxes as an owner at all given my undocumented "interest holder" status?
Thanks