Member of LLC not getting paid.

[Delusion]

What is the name of your state (only U.S. law)? California

Hi, I am a member of an LLC. There is one managing member with 65% share and me with 35% share and his wife with 0%. We have been in business for a couple years and have been taking a regular salary. We also now have a couple employees (his sister and cousin). He hired them because he thought we would be getting more business which didn't happen. So now were don't have the funds to pay everyone. Only the regular employees and his wife get paid. He and I both get nothing. I do a lot of the work and have not been paid in months. This is a big problem for me and I am pretty much broke. He refuses to change anything (changing his family to hourly or letting them go). Since I am just a regular member I have no say and feel like I am being forced out. Do I have any rights to the salary I was receiving? Thanks for any advice you can provide.

 

[LdiJ]

What is the name of your state (only U.S. law)? California

Hi, I am a member of an LLC. There is one managing member with 65% share and me with 35% share and his wife with 0%. We have been in business for a couple years and have been taking a regular salary. We also now have a couple employees (his sister and cousin). He hired them because he thought we would be getting more business which didn't happen. So now were don't have the funds to pay everyone. Only the regular employees and his wife get paid. He and I both get nothing. I do a lot of the work and have not been paid in months. This is a big problem for me and I am pretty much broke. He refuses to change anything (changing his family to hourly or letting them go). Since I am just a regular member I have no say and feel like I am being forced out. Do I have any rights to the salary I was receiving? Thanks for any advice you can provide.

You do have rights but they can be difficult to enforce with your set of circumstances. I suggest that you consult a local attorney (not necessarily hire one at this point but pay for an hour of their time) to get a better feel for the realities of your situation. It may or may not be legal for the managing member to make the decision that working members do not get paid. It may or may not be legal (and your operating agreement would factor into this) for the managing member to keep unneeded employees on staff (particularly ones related to him) while not paying the salary of working members.

 

[BigMouthWino]

What is the name of your state (only U.S. law)? California

Hi, I am a member of an LLC. There is one managing member with 65% share and me with 35% share and his wife with 0%. We have been in business for a couple years and have been taking a regular salary. We also now have a couple employees (his sister and cousin). He hired them because he thought we would be getting more business which didn't happen. So now were don't have the funds to pay everyone. Only the regular employees and his wife get paid. He and I both get nothing. I do a lot of the work and have not been paid in months. This is a big problem for me and I am pretty much broke. He refuses to change anything (changing his family to hourly or letting them go). Since I am just a regular member I have no say and feel like I am being forced out. Do I have any rights to the salary I was receiving? Thanks for any advice you can provide.

You are not required to continue performing work for the LLC and you will still own 35% of it.