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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Business Law
Satisfied Customers: 41221
Experience:  Run my own successful business/contract law practice.
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I'm the co purchaser of a vehicle and the purchaser is my

Customer Question

Hi, I'm the co purchaser of a vehicle and the purchaser is my LLC. I own the LLC with another person. Does this person has any rights to the vehicle? And can I remove the LLC from the vehicle registration?
Submitted: 1 year ago.
Category: Business Law
Expert:  Dimitry K., Esq. replied 1 year ago.

Thank you for your question. Please permit me to assist you with your concerns.

Yes, as owner of the LLC, and if the LLC owns the title to the vehicle, the other owner has the same right to the vehicle as you would, if you are 50/50 partners. If he owns 10% of the LLC, then he has a 10% interest in the vehicle. Once purchased under the LLC, you cannot remove it from vehicle registration unless you, via the LLC, sell the vehicle to you, you buy the vehicle and pay the LLC value for the car, and then you obtain new title under your name. But keep in mind that if you do so, any profits and proceeds from the sale and purchase are split between all LLC partners and shareholders based on proportionate share of ownership.

Sincerely,

Dimitry, Esq.

Customer: replied 1 year ago.
Thank you. Can I remove my name then? I just added my name as a co purchaser because the LLC has no credit.
Expert:  Dimitry K., Esq. replied 1 year ago.

Hi,

No, you cannot, the creditor did business with you both, so if the vehicle was financed, he can refuse to remove you until you pay off the loan.

Sincerely,

Dimitry, Esq.

Customer: replied 1 year ago.
I spoke to the creditor, Nissan Commercial Vehicles, and was informed that the finance contract can be changed to my name only. If I do this, can the other person on the LLC press charges against me for anything? The reason I would like to do this is because my business is a mobile pet business and I'm the GM and the other person is the technician performing the house calls, however I travel frequently due to my other job and I'm afraid this person will come to my place, where the vehicle insurance is registered at and take the vehicle away without my knowledge.
Customer: replied 1 year ago.
Let me know if you can respond to this question so I can rate your assistance. Thank you
Expert:  Dimitry K., Esq. replied 1 year ago.

Hi,

My apologies on the delay, I was offline but I would be most happy to clarify.

If you can change the car to your name, then that is great as far as your obligation to the financier. But as you are effectively removing an asset from the LLC, even if it is an asset that you can claim full control over, the other party can claim and argue that you are removing assets without permission. While unlikely if you are on good terms, if your partnership turns bitter and acrimonious, that is an argument that the other partner can use against you.

Sincerely,

Dimitry, Esq.

Customer: replied 1 year ago.
Got it. Thank you.
We are not in good terms. My partner has diverted business payment to her personal bank account. She received payment from a client in cash and deposited into her account instead of the business account. I have the printed deposit slip showing the amount and the number of her personal account. I also confirmed with the client the amount received as well as the date. She also opened a different business account that I didn't have access to in order to deposit the checks payable to the business. The only reason I found out was that I received an email from the bank with an account number I didn't have in my files so I got confused since I'm the bookkeeper. She also changed the password ***** the business account which I can easily change it back but this is a question of good faith. This is the reason I'm trying to protect the assets of the company as well as find a way to expel her as a member. Please let me know if you can assist and what the cost is. Thanks.
Expert:  Dimitry K., Esq. replied 1 year ago.

Thank you for your patience.

This sounds like a potentially explosive and a poisonous situation. I can try to help as much as I can, but as far as representation, that is something that I cannot provide as it would violate site rules. If you have more questions or are seeking more thoughts I can definitely assist, but I cannot extend my assistance to beyond this website. I am sorry!

Sincerely,

Dimitry, Esq.

Customer: replied 1 year ago.
I understand. Based on the situation I described do you think this will be considered enough for her to be expelled?
Expert:  Dimitry K., Esq. replied 1 year ago.

Hi,

Please understand that I am only going by your facts. Based on your facts you have a basis to pursue a dissolution. But nobody can be 'expelled' from something they own. You can file to dissolve and split the assets, but you cannot simply take over ownership of a business under your name based on bad acts of other owners. That is not something that takes place.

Sincerely,

Dimitry, Esq.