I am a partner 50/50 in a Company, LLC. My business partner wants to buy a building and put it in our company name. I do not want to buy the building and do not want him to put it in our Company name. Can he take a loan out in our company name and put the building in our company name without my permission?rich
Thank you for the post, I am happy to assist you by answering your questions. What does your operating agreement state with respect to the power vested in each member to bind the LLC?
Don't understand your question. We are 50/50 partners.
I was asking what your operating agreement states with respect to one member's ability to indebt the LLC.
not sure. we are just a manufacturing Rep. firm. Very small, just 2 of us, no employees. Can he put the building/loan in my our company name if I don't sign anything?
Yes, technically he can. In order to stop him doing so, you should consider having outside counsel advise him that you will seek to block the transaction or dissolve the LLC.
Will I be responsible for the loan if I don't sign for it?
Not personally liable, but the LLC will be liable.
I don't see how the company can buy a loan without both parterns signing on the loan. If my wife signs for credit cards and I don't and she doesn't pay the bills I am not responible for them.
I understand, but you and your wife are not a business. Your partner is binding the business, not you in your personal capacity.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).