Here are some facts that I can add to give a better picture of the situation.2010 [start]
started iFixers in june 2010
I was the only person behind the idea, and had all the technical and operation skills.
Mr. Wakil didn't know any thing about the business of repairs.Things that were under Mr. Wakil Name:
Factious business name
store lease agreement [5-years]
he spent like $3000-40000 plus $500 for lease depositThings that were under my name:
Business license from city of santa clara
EIN number [he asked me to fill it as sole proprietorshipOperations:
I used to work 7 days a week none stop
responsible for 100% of business operations
Responsible for all the expenses
i case of short revenue i would cut from my paycheck to pay for those
During this year he would come and ask for money to pay his bill, and would demand in cash. I would give him without knowing this could be a problem later.End of year:
Filled the taxes as sole proprietorship
the only profit was my salary [which should be counted as salary]2011:
During this year all the operations were operated by myself without any involvement from him. I would work 7 days a week, some times 12-16 hours a days to get things done.
Total Revenue was $79000, the only profit was my salary and the end only make $3000 profit.End of year: filled taxes as sole proprietorship. during this year Mr. Wakil took some money but i didn't have the count. [i know i poorly managed it, i should have been a lot more careful]Looking at how we were working and how the business was managed I decided to break the partnership and when I proposed this to Mr. Wakil he said no Problem we can do it by rule of Thumb. which was calculated as(gross sales of 2011)/2)/2
which makes it
(78000/2) =39000/2 = $19500.00
I already pay him back $3700 out his initial investment of $4500.in 2013 I stopped using the DBA that registered and moved from the location where we originally started. I operated under a different name ever since and now my business is Run solely by my self under and LLC.Today my revenue is around 200K a year.I have never singed any officially contract
or agreement with him. Its just all in our email communications. also One day he came and told me to write a paragraph that He he wanted to have His daughter be my partner not him self. i worker on a white piece of the paper the followingDear Sir/ Madam ,I would like to have [Her daughter name] as a 50/50 partner in at my business and then signed it without a date.What are my options and what are the consequences.