F
flowerfroggirl
Guest
What is the name of your state? VA
We formed a business in Sept. I was supposed to get 51% and Mr. Pearson was supposed to get 49%. Neither of us have paid for our shares.
We contracted 10 HS in the area to photograph their sporting events, post the images on a website, and sell to the parents and students at the HS.
Our partner did many things wrong. He changed a contract without telling me or my husband. He never filed paperwork with VA State Dept of Tax and didn't change from a C-corp to a S-corp like we had all agreed upon. He withheld credit card receipts, processed order information, and statements from the Merchant Services account regarding their fees. I can't balance the business checking account and don't know how much money we're supposed to have in there because of it. Our accountant can't print the reports he needs to be able to pay taxes properly. Mr. Pearson wants me to pay for his shares, but I don't want to. Our accountant said that if no one has paid for their shares, that no one owns the business.
We have shelled out over 30K for equipment and supplies to further this business and Mr. Pearson has only shelled out $130. The only thing he did was have meetings with the schools to obtain contracts that aren't really necessary anymore.
Where do my husband and I stand should Mr. Pearson brings a law suit against us? Can we get Mr. Pearson out of the business without a law suit? Or would it be better to let Sports Photos, Inc. dissolve and my husband and I form a new business after the contracts run out? We don't have a lot of money to be able to afford lots of legal procedures. All our money is in the business.
Thanks in advance.
We formed a business in Sept. I was supposed to get 51% and Mr. Pearson was supposed to get 49%. Neither of us have paid for our shares.
We contracted 10 HS in the area to photograph their sporting events, post the images on a website, and sell to the parents and students at the HS.
Our partner did many things wrong. He changed a contract without telling me or my husband. He never filed paperwork with VA State Dept of Tax and didn't change from a C-corp to a S-corp like we had all agreed upon. He withheld credit card receipts, processed order information, and statements from the Merchant Services account regarding their fees. I can't balance the business checking account and don't know how much money we're supposed to have in there because of it. Our accountant can't print the reports he needs to be able to pay taxes properly. Mr. Pearson wants me to pay for his shares, but I don't want to. Our accountant said that if no one has paid for their shares, that no one owns the business.
We have shelled out over 30K for equipment and supplies to further this business and Mr. Pearson has only shelled out $130. The only thing he did was have meetings with the schools to obtain contracts that aren't really necessary anymore.
Where do my husband and I stand should Mr. Pearson brings a law suit against us? Can we get Mr. Pearson out of the business without a law suit? Or would it be better to let Sports Photos, Inc. dissolve and my husband and I form a new business after the contracts run out? We don't have a lot of money to be able to afford lots of legal procedures. All our money is in the business.
Thanks in advance.
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