Asker
Posted about 14 years ago.
It should also be stated that she knows absolutely nothing about the inner workings of the company, from how the product is made to how it is distributed. She was essentially silent in most of the daily business activities.
Robert Kenneth Morrow Lawyer
Posted about 14 years ago.
An LLC member is not entitled to regular payments from his LLC except insofar as the members' agreement so provides. As there seems to be no dispute that you're a member of the LLC, that's going to be where your case is decided: Is there an enforceable agreement between you and your partner as to your right to take regular draws or payments from the LLC? I agree with Mr. Hanson that you're going to need to engage counsel to prove the existence of those terms.
There's some other larger issue here, however. Why the sudden change in her attitude? Will your association with her even survive this dispute? It's very likely that what you're headed for is not a claim to back pay, but the company's dissolution, one way or another. If you believe that your interest in the company is worth fighting for, then it seems your only option is to hire a lawyer to begin working out who gets what. I'm sorry that we can't give you an easier answer, but that really seems to me to be your only alternative.
Asker
Posted about 14 years ago.
The change in attitude is in direct correlation to her recently remarrying and her new husband wants me out and wants to take over the business. I've invested too much personal time to just walk away. I have stated quite clearly I would step down from a managerial position, but the problem is that they don't know how to run the company. They don't even know how the product is made. My many offers to temporarily remain in my position with pay (2-3 mo) and position everything into such a way that others could take over has been met with silence. My request for mediation, met with silence. My request to discus anything, met with silence. Accept to suggest that i had no right to pay myself and that I need to continue with business as usual "because she says so" I've gotten crickets and tumbleweeds for a response. meanwhile we continue to lose money, bills go unpaid and customers are constantly inquiring about when we will be up and running again (the website).
Asker
Posted about 14 years ago.
Yes, I received a K1 for each and every year. I have a spreadsheet of all monies both paid and unpaid that correlate with our accounting. However, the monies not paid were not notated in our accounting. The odd thing is that she is not saying that she never agreed to pay me; she is only saying that the money I paid myself in 2011 to date was not payable. There is no real rhyme or reason to it. She is also insisting that I continue to do all my previous duties and not be paid. I have said no. I cannot afford to not be paid anything and doing all that I was doing is virtually a full-time job. I have to work, whether at my own company or for someone else. I am owed back money to the tune of almost 57k. I have contacted the LA Mediation Department and opened a case. But she refuses to see a mediator. In fact, she is refusing to have any conversation accept to demand that I continue to work as before. She says that as majority stake holder she can do what she wants. But by not doing anything, she is putting the company in serious jeopardy. Is there anything I can do to press the issue and get the company up and running again without her approval?