I am in Arizona.
I recently (November, 2006) chose a business name I wanted to start using for my identity (I am an oil painter, and have yet to see any financial gain but have gotten a lot of good feedback after doing my first show in December and have an opportunity to do another show this spring.
I designed the name and logo and created business cards and some flyers for the show. I did not officially register my name in any way but was actively using it and handing out my cards. I also registered a domain with this name for a website I will sustain. The cost of the domain was too much for me to afford, and my friend and housemate paid for it without mention of expectations or ownership. This friend has been very supportive of my work and has helped my financially all along, eagerly, and stating that repayment is not expected but if I become a raging success, it would be nice to pay something back. This was never stated as a requirement.
On a recent trip out of state for the holidays, I recieved an email from my friend stating that he was going to form an LLC using the name I created, designed and started using for my own identity, and that he was going to make himself sole owner/partner of this company.
I really didn't care much about his choosing to form an LLC, but I vehemently opposed his taking and naming his company with my name that he had never mentioned interest in previously.
I could simply use another name, but this name happens to be very significant to me as it is a combination of the two nicknames I gave my daughters and that is its greatest value to me. Not something I can alter, either. The names are unique.
I asked that my friend please use an alternate name or partial/alternate name and he ignored my wishes and made a legal company titled with my name.
I have not made any money, I don't want partnership in the company (and I was not even informed that it was going to be created even though the reason he gave was to ensure his investment if and when I sell artwork, so the company is based on my identity, life's work and apparently has total control over all of that if I continue using the name I chose earlier. I was never offered any choice, partnership or percentage of this company even though it is based solely on me.
I did not consent to any part of it and would have expected a negotiating session and mutual agreement prior to legal formation of the company, especially since I am more than involved.
All I want is my name removed and given back to me. I did not agree to transfer ownership and I don't know what I can do, if anything, since there has been no profit based on my business name--I literally just started and I can't believe that it can be taken from me (and all rights to its use) so easily. I was however, actively using this name and there was no question as to its use or meaning. Nor was there ever any discussion of my transfering ownership, yet it was taken from me involuntarily and I don't know how the accountant went through with this matter.
I have no problem with forming a legal agreement with this person that is reasonable and appropriate and done with mutual agreement. I don't want to take anything from this person and I am grateful for the help I've received so far.
It was not nice for him to take my name and form a company giving him exclusive rights to it and everything associated with it, but was it legal? He doesn't understand what the "big deal" is since he says he intends on my having full ownership of the company eventually. I was not even aware that it was being formed, nor was I offered any choice or information prior to the formal LLC being created. I was told that I was not a partner of any kind, because it was "simpler" for him to just make himself sole proprieter/owner/partner. He should have created his own name, then, I would think.
Thank you for any answer you might be able to provide, even one I don't like.
selket
I recently (November, 2006) chose a business name I wanted to start using for my identity (I am an oil painter, and have yet to see any financial gain but have gotten a lot of good feedback after doing my first show in December and have an opportunity to do another show this spring.
I designed the name and logo and created business cards and some flyers for the show. I did not officially register my name in any way but was actively using it and handing out my cards. I also registered a domain with this name for a website I will sustain. The cost of the domain was too much for me to afford, and my friend and housemate paid for it without mention of expectations or ownership. This friend has been very supportive of my work and has helped my financially all along, eagerly, and stating that repayment is not expected but if I become a raging success, it would be nice to pay something back. This was never stated as a requirement.
On a recent trip out of state for the holidays, I recieved an email from my friend stating that he was going to form an LLC using the name I created, designed and started using for my own identity, and that he was going to make himself sole owner/partner of this company.
I really didn't care much about his choosing to form an LLC, but I vehemently opposed his taking and naming his company with my name that he had never mentioned interest in previously.
I could simply use another name, but this name happens to be very significant to me as it is a combination of the two nicknames I gave my daughters and that is its greatest value to me. Not something I can alter, either. The names are unique.
I asked that my friend please use an alternate name or partial/alternate name and he ignored my wishes and made a legal company titled with my name.
I have not made any money, I don't want partnership in the company (and I was not even informed that it was going to be created even though the reason he gave was to ensure his investment if and when I sell artwork, so the company is based on my identity, life's work and apparently has total control over all of that if I continue using the name I chose earlier. I was never offered any choice, partnership or percentage of this company even though it is based solely on me.
I did not consent to any part of it and would have expected a negotiating session and mutual agreement prior to legal formation of the company, especially since I am more than involved.
All I want is my name removed and given back to me. I did not agree to transfer ownership and I don't know what I can do, if anything, since there has been no profit based on my business name--I literally just started and I can't believe that it can be taken from me (and all rights to its use) so easily. I was however, actively using this name and there was no question as to its use or meaning. Nor was there ever any discussion of my transfering ownership, yet it was taken from me involuntarily and I don't know how the accountant went through with this matter.
I have no problem with forming a legal agreement with this person that is reasonable and appropriate and done with mutual agreement. I don't want to take anything from this person and I am grateful for the help I've received so far.
It was not nice for him to take my name and form a company giving him exclusive rights to it and everything associated with it, but was it legal? He doesn't understand what the "big deal" is since he says he intends on my having full ownership of the company eventually. I was not even aware that it was being formed, nor was I offered any choice or information prior to the formal LLC being created. I was told that I was not a partner of any kind, because it was "simpler" for him to just make himself sole proprieter/owner/partner. He should have created his own name, then, I would think.
Thank you for any answer you might be able to provide, even one I don't like.
selket
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