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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 110537
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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my partners in our LLC are in disagreement on Banking and Accounting.

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my partners in our LLC are in disagreement on Banking and Accounting. They feel that it is okay for the founder of the LLC to handle all monies and distribute it as he sees fit since he is the one who put up the initial injection of capital. This would mean I would have to "ask" for funds, use, etc, although I am an EQUAL partner to the founder in percentage. I disagree and think we should ALL have access to the account with an "open book" accounting mentality and just communicate the use of funds with eachother AFTER it is approved by all. Which is smarter and why? Which is "ethical" toward each partner?
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

Unless you have an operating agreement to the contrary about this procedure, the CA laws require that all members of the LLC have access to the books and accounting of the LLC. Additionally, without an operating agreement to the contrary all members of the LLC are to share equally in the net profits of the LLC. Your thoughts are actually what the default law says and if you have no operating agreement to the contrary is how you should be operating.

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