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Good evening. Let me see if I can help you. First, there are two roles you were originally filling. You were both members and employees of the LLC. When you were both working full time, it didn't make much difference that you weren't paid compensation as long as you were contributing equally. Now that you are not, you are entitled to compensation for working. This is an expense of the LLC and this money would be paid to you before any distributions to the two of you as owners. Second, yes the money you have to pay others to do the work of the now non-working member would also be an expense of the LLC and would be paid to them before any distributions to the members. Then, any money left would be available to be distriubted to you two as the members. Third, if you are no longer happy with the ownership sharing arrangement due to this change, and your operating agreement does not address this possibility, then you need to sit down with her and either discuss a change in the ownership interest or figure out how to buy her interest from her...perhaps over time if you cannot afford to pay a lump sum.
I hope this has given you the guidance you were seeking. I wish you the best of luck!
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