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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 118654
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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My partner and I have opened a business with our own money.

Resolved Question:

My partner and I have opened a business with our own money. The business is under an LLC that has been in existence for about 3 months. While we were opening this we were being paid a salary by the owner. All leases and are in the company name and have my signature. The owner is now unable to pay our Salary or any of the expenses associated with the business. Can we change the business name and incorporate on our own, leaving the other LLC behind?
Submitted: 8 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 8 years ago.
The only thing that would prevent you from doing this is any written contract/agreement with the owner of the other LLC. Of course the owner could try to sue you by alleging you are using his proprietary information and that you have started your own LLC while he was paying you a salary to do work for his business. You can quit the current position and start your own LLC, but again, the agreement you have with the owner or using any proprietary information or technology developed while being paid by the current company would be your stumbling blocks that could lead to a suit. Since the owner is unable to pay you any salary, perhaps you should consider seeking a written release from him from any obligations to the current company and then move out and start your own LLC.

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