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Need Some Advice for a friend

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What is the name of your state? MI

This is a friend of mine's question he asked on another forum. I figured I'd post it here to see what kind of help he could get.

Basic synopse of the situation is this. Me and a partner went into business. Signed a basic simple one page partnership agreement. Basically states I own 35% he owns 65%. I fronted the money to upstart the business he provides 100% of the sweat equity (runs the business in day to day operations) Hindsight I realize I should have a much larger percentage but whatever.... The issue is in the first year we deposited say $100,000 into the account. regardless of the extra money I'm positive he's putting in his pocket we had a hundred grand hit the account. Now rent is only $650 a month. I take a $1000.00 (which is supposed to be $2500.00 a month per signed contract) he pays me faithfully a $1000.00 every month. About $150.00/wk for gas. and $300.00 in Utilites. would be the total monthly expenses to operate the business.

Basically being generous I said to operate the business took about $40,000-$45,000 in the last year. After checking the books something is very very amiss. We have roughly $100.00 in the account. We are simply missing $50,000.00+ dollars. And this is causing me a ****load of stress. Considering I'm falling behind on my own bills because I'm being shorted tens of thousands of dollars.

Now there are alot more details. But I just need a general consincous here about direction to go in. I know everyone will have opinions but I need actual legal advise on options.
 


JETX

Senior Member
But I just need a general consincous here about direction to go in. I know everyone will have opinions but I need actual legal advise on options.
1) What EXACTLY does your agreement say as to distribution of the income??
2) Hire a local COMPETENT CPA to audit the books.
3) After getting the CPA report, take appropriate action to stop your account 'leakage'.
 

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