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BH
BH, Attorney
Category: Business Law
Satisfied Customers: 313
Experience:  NY and CA Attorney 8+ Years
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I started an LLC in the state of Missouri with myself as the

Customer Question

I started an LLC in the state of Missouri with myself as the sole proprietor. A month in I was struggling financially and an old employer offered me $600 up front, pay for billboard, shop sign, and rack truck for the business. He asked for 33% of the company with him only collecting after I was paid x amount a month from profits. He only came through with the $600 and 3 months later still hasn't supplied the rest. I handle everything day to day and he has no involvement or access...this agreement was all verbal other than the 600 dollar.check he wrote 33% percent for my company on the memo part of the check. Nothing has been in writing I'm still sole proprietor on paper. I now have a real investor that truly wants to work the company and invest in it. How can I get the other guy to go away and not worry about a lawsuit popping up a year from now?
Submitted: 3 years ago.
Category: Business Law
Expert:  BH replied 3 years ago.

Bridgeth :

You could send him a letter stating that he breached the agreement by failing to provide the remainder of the consideration (i.e. the billboard, sign, etc.) and that you consider the agreement terminated. Along with this letter, provide a refund of the $600.

Bridgeth :

If he accepts the check as a refund you can rely on this as his acceptance of the termination of any agreement between you. Of course it would be better to have his acceptance of such termination in writing but it would likely hold up in court if later he attempts to claim that he owns 33% of your business.