Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.
Good evening. No, he's not going to be able to walk away from this and claim all the profits. There is a signed agreement. If the lawyer failed to file the formation document with the state, there may not be a validly formed LLC, but what you do have is going to be considered a general partnership
or joint venture
. And, you will all be bound by this agreement regarding your relationship with each other. If he were to simply take the money of the entity in contravention of the terms of the agreement, you would have a cause of action
for breach of contract and fraud but also usurpation of business
opportunity if he conducts the same business on his own. Also, because he would basically be taking not only his share of the money but the shares of the other partners, you could contact the district attorney's office and pursue criminal prosecution for stealing/embezzling your money.
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