I
ineedadvice88
Guest
State: GA
S-Corp of 4 equal partners.
One partner (let’s call him 4th partner) owned a business (let’s call it bus. A) prior to entering into the S-Corp. The previous owner of bus. A sold bus. A to 4th partner through owner finance for around $60K . After a few months of operation, S-Corp decided to purchase bus. A by taking over payments of owner-financed loan. All partners attempted to have their names added to loan. However, previous owner did not agree to add the other 3 partners to the loan. So, 4th partner is only name on the loan even though S-Crop now owns bus. A. 4th partner also applied for credit cards for S-Corp in his name which now has around $16K balance. Now, 4th partner has since left S-Corp for a new job but vowed to continue working as much as possible which ended up being NEVER. So, S-Corp decided to take 4th partner off payroll and make him merely a stockholder. 4th partner did not like this so is now planning to sue S-Corp for back pay when S-Corp could not make payroll due to lack of funds and sue to have all debt removed from his name even though S-Corp is still making payments on loan and credit cards. One credit card payment (in 4th partner’s name) was late because S-Crop refused to make the payment due to all charges being personal charges of 4th partner. We have recently discovered S-Corp has been paying these monthly personal charges for over a year now.
1. Does 4th partner have a legal stance on back pay issue even though none of the partners have been paid for those pay periods?
2. Can other 3 partners be held personally liable for loan of bus. A if S-Corp fails to succeed?
3. Can other 3 partners be forced to take on debt of bus. A loan thus removing debt from 4th partner?
S-Corp of 4 equal partners.
One partner (let’s call him 4th partner) owned a business (let’s call it bus. A) prior to entering into the S-Corp. The previous owner of bus. A sold bus. A to 4th partner through owner finance for around $60K . After a few months of operation, S-Corp decided to purchase bus. A by taking over payments of owner-financed loan. All partners attempted to have their names added to loan. However, previous owner did not agree to add the other 3 partners to the loan. So, 4th partner is only name on the loan even though S-Crop now owns bus. A. 4th partner also applied for credit cards for S-Corp in his name which now has around $16K balance. Now, 4th partner has since left S-Corp for a new job but vowed to continue working as much as possible which ended up being NEVER. So, S-Corp decided to take 4th partner off payroll and make him merely a stockholder. 4th partner did not like this so is now planning to sue S-Corp for back pay when S-Corp could not make payroll due to lack of funds and sue to have all debt removed from his name even though S-Corp is still making payments on loan and credit cards. One credit card payment (in 4th partner’s name) was late because S-Crop refused to make the payment due to all charges being personal charges of 4th partner. We have recently discovered S-Corp has been paying these monthly personal charges for over a year now.
1. Does 4th partner have a legal stance on back pay issue even though none of the partners have been paid for those pay periods?
2. Can other 3 partners be held personally liable for loan of bus. A if S-Corp fails to succeed?
3. Can other 3 partners be forced to take on debt of bus. A loan thus removing debt from 4th partner?