How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Law Educator, Esq. Your Own Question
Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 110400
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
Type Your Business Law Question Here...
Law Educator, Esq. is online now
A new question is answered every 9 seconds

My partner and I have opened a business with our own money.

Resolved Question:

My partner and I have opened a business with our own money. The business is under an LLC that has been in existence for about 3 months. While we were opening this we were being paid a salary by the owner. All leases and are in the company name and have my signature. The owner is now unable to pay our Salary or any of the expenses associated with the business. Can we change the business name and incorporate on our own, leaving the other LLC behind?
Submitted: 7 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 7 years ago.
The only thing that would prevent you from doing this is any written contract/agreement with the owner of the other LLC. Of course the owner could try to sue you by alleging you are using his proprietary information and that you have started your own LLC while he was paying you a salary to do work for his business. You can quit the current position and start your own LLC, but again, the agreement you have with the owner or using any proprietary information or technology developed while being paid by the current company would be your stumbling blocks that could lead to a suit. Since the owner is unable to pay you any salary, perhaps you should consider seeking a written release from him from any obligations to the current company and then move out and start your own LLC.

I hope you found my answer helpful, please click on the GREEN ACCEPT for my answer. This is necessary for me to be paid for my work and so that I can get credit for assisting you. Your question will not close, and you will still have the opportunity to follow-up if needed. Leaving a bonus and positive feedback is not required, but doing so is certainly appreciated!

If you have additional questions, please keep in mind that I do not know what you already know or don't know, or with what you need help, unless you tell me. Please consider that I am answering the question or question that is posed in your posting based upon my reading of your post and sometimes misunderstandings can occur. If I did not answer the question you thought you were asking, please respond with the specific question you wanted answered.

Also remember, sometimes the law does not support what we want it to support, but that is not the fault of the person answering the question, so please be courteous.

There can also be a delay of an hour or more in between my answers because I may be helping other customers or taking a break.

Law Educator, Esq. and other Business Law Specialists are ready to help you

Related Business Law Questions