LLC partner not receiving fair share

[day32]

Oklahoma

I am a 33.3% partial member in a LLC with 2 other partners. I need some help as I think I'm getting stiffed as haven't been updated on anything nor received any income from the business.

I know that money is being made off since two buildings were purchased with the money all members have invested with, and are being leased to two corporations, as I am a partial owner I assume I am entitled to a percentage of this income but haven't seen nil and I only know the names of the business! As this has been happening for quite some time could I sue or force a dissolution of this business?

Thank you

 

[tranquility]

What does your K-1 report? Are you saying that there is tax fraud going on or what?

 

[clueless3]

Just ask to see the books!!

It seems as if there's a lack of simple communication. It also seems as if internal policies are not established and/or enforced. It also seems as if you are not doing your due diligence as a member of the LLC. (After all, this is not a Limited Partnership; this is an LLC, correct?)

What does the Operating Agreement say? Who is the Manager of the LLC? How often is the profit supposed to be distributed to the members?? Once a month? Once a decade? Who are the signers of the bank accounts? Where are the books kept? Who manages the rental properties?

As a member of an LLC, YOU are supposed to be ACTIVELY engaged in the running of the business. Just because you "think" that money is being made, sometimes it may not be true. Some rental properties don't make any money! Just get to the bottom of it and see where it goes. After all, you still OWN 1/3 of the real estate; you simply did not get the profit from the rental income, if any.