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I want my name removed from the LLC

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bchong.ca

New member
About 4 months ago I quit working for my relatives after a tumultuous relationship. During my exit, I verbally requested that they remove my name from two LLC's that were formed in California. The two LLC's were formed so that all the existing employees were hired under a new company so that the true owners captured a lower workers comp insurance rate, because under the current company the mod rates were extremely high. I don't get compensated for being a member of both entities, they used me just so that they can save money and I am concerned about liability. I emailed the company three days ago for an update to my request and I have yet to receive a response from them. The company has more resources than I do and I just don't know what I can do to make them take my request seriously. The company is benefiting by using my name in both LLC's and I quit working for them for over 4 months. I am not familiar with these procedures and any help will be much appreciated!
 


quincy

Senior Member
Three days is not a long time to wait for a response to your email. I would wait at least a week.

And it is better to send a formal letter (certified mail, return receipt requested).
 

bchong.ca

New member
Three days is not a long time to wait for a response to your email. I would wait at least a week.

And it is better to send a formal letter (certified mail, return receipt requested).
After I did some research, the LLC is under my name. Does that mean I can just file the paperwork with the Secretary of State and have the LLC dissolved? Do I just send a certified letter to my uncle's company stating that XYZ LLC will be dissolved in 60 days? How do I make sure that my uncle and his company pay for any and or all taxes/penalties pertaining to the LLC?
 

quincy

Senior Member
After I did some research, the LLC is under my name. Does that mean I can just file the paperwork with the Secretary of State and have the LLC dissolved? Do I just send a certified letter to my uncle's company stating that XYZ LLC will be dissolved in 60 days? How do I make sure that my uncle and his company pay for any and or all taxes/penalties pertaining to the LLC?
Because what you are describing is out of the ordinary, I recommend you sit down with an attorney in your area for a personal review of the LLCs and your role at their helm.

Good luck.
 

Zigner

Senior Member, Non-Attorney
I agree that a personal review by an attorney is necessary - particularly as the OP has participated in work comp insurance fraud and could be exposed to extreme personal liability.
 

LdiJ

Senior Member
I agree that a personal review by an attorney is necessary - particularly as the OP has participated in work comp insurance fraud and could be exposed to extreme personal liability.
We assume WC fraud. Quite frankly I find the OP's explanation of things confusing. Therefore I really agree with you and Quincy that a consult with a local attorney is needed.
 

quincy

Senior Member
I agree that a personal review by an attorney is necessary - particularly as the OP has participated in work comp insurance fraud and could be exposed to extreme personal liability.
I would want to know more before coming to any conclusions ... :)
 

quincy

Senior Member
The OP was involved in setting up a sham entity in order to obtain lower WC rates.
I think more needs to be known about the LLCs and how they are operating before drawing any definitive conclusions.

bchong.ca should speak to an attorney. He could wait to see if his uncle responds to his letter first or he could see one now.
 

quincy

Senior Member
That's the way the OP reads to me...
bchong.ca certainly seems concerned about being connected to his uncle's operation, at any rate. :)

I still am not really understanding the situation.

Is the uncle in California? Are the workers in California? Or is the uncle out of state, operating his business out of state, with only his LLCs formed in California?

There is nothing wrong with forming an LLC in a state that offers advantages to your business that you do not get in your own state, even if you do not intend to operate your business in that state. But if the uncle is out of state, a problem here could be in the uncle seeing as an advantage California's workers compensation laws when the operations of the business, and the workers, are located in another state.

Workers compensation generally follows the employee (where he works, where he lives) and not where the business was formed.

I definitely have more questions than answers so my advice remains for bchong.ca to see an attorney local to him.
 
Last edited:

justalayman

Senior Member
After I did some research, the LLC is under my name. Does that mean I can just file the paperwork with the
Secretary of State and have the LLC dissolved? Do I just send a certified letter to my uncle's company stating that XYZ LLC will be dissolved in 60 days? How do I make sure that my uncle and his company pay for any and or all taxes/penalties pertaining to the LLC?
And you didn’t know this previously? Dontcha remember signing the paperwork?



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