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CalAttorney2
CalAttorney2, Attorney
Category: Business Law
Satisfied Customers: 10236
Experience:  I am a businesses law attorney, with experience advising and representing owners and investors.
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I am a 50/50 owner in an LLC in AZ. My partner and I have

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I am a 50/50 owner in an LLC in AZ. My partner and I have no written agreement between us. If he were to try to 'push me out', do I have any rights? Say that I came to work one day and he had the locks changed? Is there any way to enforce anything since we have no written agreement? From what I understand, a judge would look at how profits had been distributed during the time we were in operation.

William B. Esq. :

Thank you for using our service. My name is XXXXX XXXXX I would like to assist you today.

William B. Esq. :

If there is no LLC operating agreement in place, the Arizona Limited Liability Company Act will supply "default" rules or provisions for your company (here is an article written by an Arizona Firm regarding these rules: http://cooklaw.co/blog/arizona-llc-operating-agreements)

William B. Esq. :

The other member cannot "push you out" - he can petition the court to dissolve your LLC, but any actions to change locks, or otherwise force you out of the LLC will be both a breach of contract and a breach of fiduciary duty. You would be entitled to file a civil lawsuit for declaratory relief and monetary damages (both compensatory and punitive) for these actions. You could file a motion for injunctive relief to get immediate relief if he were to try to force you out of the business by changing locks or otherwise stopping you from engaging in the business.

William B. Esq. :

I hope the above is helpful, if you have any questions please do not hesitate to let me know and I will follow up quickly.


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