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Attorney2020
Attorney2020, Attorney
Category: Business Law
Satisfied Customers: 2578
Experience:  I am a practicing attorney. I have experience in business law, bankruptcy, real estate law and estates.
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LLC formed last Jun; four partners. Each contributed money,

Customer Question

LLC formed last Jun; four partners. Each contributed money, effort, some equipment. The partner contributing the most equipment wants out. Business is NOT profitable, to date. 1. Can he take the equipment that he brought? 2. Since we are currently paying about $4k per month in expenses, is he liable for any of those going forward?
JA: Can you tell me what state the LLC is registered in?
Customer: Texas
JA: Have you talked to a lawyer yet?
Customer: I have not. Attempting to research to determine an ultimate course of action.
JA: Anything else you think the lawyer should know?
Customer: Total money invested is probably $300k....I cannot afford to close. Business has tremendous upside.
JA: OK. Got it. I'm sending you to a secure page on JustAnswer so you can place the $5 fully-refundable deposit now. While you're filling out that form, I'll tell the Corporate Lawyer about your situation and then connect you two.
Submitted: 11 months ago.
Category: Business Law
Expert:  Attorney2020 replied 11 months ago.

The partner cannot take away the equipment as that is an asset of the LLC. Also, the exiting partner is not personally liable for expenses going forward unless a term in a contract binds the exiting partner individually responsible for such expenses. Instead the LLC is responsible for its own business expenses.

I hope that helped. Please ask any follow-up questions. Please rate my answer so that I may be credited for my time. I tank you in advance for your cooperation.

Customer: replied 11 months ago.
What happens with the lease ($12K per month - 2 years remaining on a 3 year lease)? Both, he and I, signed.
Expert:  Attorney2020 replied 11 months ago.

Signed with a personal guarantee? Signed in your individual capacities and not as authorized signatories of the LLC?

Customer: replied 11 months ago.
We signed as individuals, but it was for the building that was (is) intended of business use.
Expert:  Attorney2020 replied 11 months ago.

Okay,arguably he is personally responsible for lease payments. However it can be argued that the business is solely responsible for the lease as well.

Expert:  Attorney2020 replied 10 months ago.

Please rate my answer so that I may be credited for my time. I thank you in advance for your cooperation.

Please rate my answer so that I may be credited for my time. I thank you in advance for your cooperation.

Expert:  Attorney2020 replied 10 months ago.

You skipped crediting me for my time.

Please rate my answer so that I may be credited for my time. I thank you in advance for your cooperation.