Investment

In Colorado:

About 2 years ago I made an investment in a medical practice. In return for the capitol invested, I received a document stating signed by founding members stating I had ownership stake in this particular LLC.

From the initial time of investment I have not received a K1 and I have been not granted access to financial records, and did not sign an operating agreement. Also, I was an employee, and heavily invested sweat equity of this particular LLC. I recently left this company due to conflict with the principal owners. The principal owners refuse to buy me out without signing a very descriptive and inhibiting non-disclosure document which basically looks like a non-compete. To continue working without opening myself up to massive liability, I refuse to sign this document, and the owners refuse to buy me out.

My question is, is there anything I can do to force the sale of my equity? What are my rights here? I shouldn't have to surrender my ownership, or ability to make a living in a competitive field just to get them to buy out my ownership?

I have hired an attorney, but he told me basically that he could litigate, but most likely the legal bill would equal the money I have invested. I have already spent 3k without making any progress...

My question is, is there anything I can do to force the sale of my equity?

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No. They don't have to pay you any more than you have to pay them.

What are my rights here?

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They are listed in the partnership agreement--whether you signed or not.

I shouldn't have to surrender my ownership, or ability to make a living in a competitive field just to get them to buy out my ownership?

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Then, I suggest you substantially lower you price until one of the partners takes it.

I have hired an attorney, but he told me basically that he could litigate, but most likely the legal bill would equal the money I have invested. I have already spent 3k without making any progress..

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Litigate what? What is the legal wrong here?

(All the above assumes you can legally own a medical practice.)

The legal wrong here is that they have kept my money without granting me access to financials.

Are you a general partner? What do the organizing documents say about an "accounting"?

You certainly need to get a K-1 every year.

Are you able to own a medical practice?

As to the keeping of your money, there is no money any longer. You spent it for partnership rights.

There is no operating agreement - one is not required in the state of Colorado.

Organizing documents do not specify anything on accounting.

I am able to own a medical practice.

I understand investment money has been spent for partnership rights, but I am not currently receiving any rights, or divestments..

You missed one.

General partner as opposed to what?

Limited partner.

If there is no operating agreement or organizing documents (You said you didn't sign any at first, why didn't you say there were none?), the Colorado Uniform Partnership Act would rule. You have a right to view the records.