Ask a Business Lawyer. Get Business Law Questions Answered ASAP.
I was once part of an LLC in PA with my son his wife and my husband. My interest was 15%. I later sent letters to all partners stating I was with drawing. I was told I owed the LLC $12,000 , which was 15% of the company debt. Later the story changed.My son stated he spoke with a PA lawyer. Then he said my debt was equal to 50% of the debt...because my husband and I were in charge of capital contributions to the LLC. We took a second mortgage on our home to start the company(house flipping in PA) Is this true or not?
i don't know..where would I get that info? on the operating agreement?
found the operating agreement.States that"no members shall be given priority or preference with respect to other members in obtaining a return of capital contributions,distributions or allocations of the income, gain, losses, deductions,credits or other items of the LLc. The profits and losses of the LLC, and all items of it's income ,gain ,loss,deduction and credit shall be allocated to members according to each members percentage interest in this LLC.
When I have pointed out what the operating agreement states..he tells me "the commonwealth of PA states other wise...but will not prove where it says that. I feel like I am being bullied .
so are you saying that the operating agreement that all partners signed is what is followed? Not what the "commonwealth of PA" states????
Awesome!!!! thank you for your help...he is not going to be happy when I present this new found info to him...
In addition to all this I just realized I never received documentation that I had withdrawn from the LLC. Asked for this..and asked about dissolving the LLC...(his father is now deceased) he stated it was not necessary to do that.
Yes.I have just realized that..and I am not happy. He said he would draw up papers for me...... maybe then I will pay him the 12K
so..when I receive my letter stating I am no longer a member of the LLC...do I owe him 15% of the debt of the LLC?????
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).