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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Business Law
Satisfied Customers: 19107
Experience:  B.A.; M.B.A.; J.D.
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Business partner issues I paid built the business. She

Customer Question

Business partner issues I paid for and built the business. She refuses to pay me back or pay me my %
JA: Thanks. Can you give me any more details about your issue?
Customer: A few years ago, my girlfriend talked about the idea of having a business. I alreayhad a couple and said we could build one. I went and mae plans. Came up with name, website, marketing and more. I paid for all of it. She is now #1 in denver colorado for cleaning after my work and refuses to pay me back the statup costs, or my 5% revenue. Im 33% owner. I have an agreement signed that outlines all of this and its filed with the secretary of state under the biz. It explains that what i just said. When the biz was filed in 14, she basically backed out and said she didnt want it. In 15, i began to move forward with marketing and more. She did not want the responsibility and asked to just be a manager. I said its a bit late after state filings, etc. But not to worry. Im good at what i do and i would cover startup costs and she could work for me to supplement.
JA: OK got it. Last thing — Business Lawyers generally expect a deposit of about $18 to help with your type of question (you only pay if satisfied). Now I'm going to take you to a page to place a secure deposit with JustAnswer. Don't worry, this chat is saved. After that, we will finish helping you.
Submitted: 1 year ago.
Category: Business Law
Customer: replied 1 year ago.
In addition to what was previously mentioned in chat, i have only received 1 check for $1000. I put around 10k+ into startup and 150 hours with close to an equivalent value. I used my own marketing business resouces to build it. I havent yet, but could easily create an invoice to validate these claims. And with the cost of marketing services of the quality i provide, and the fact that she is #1 across the board in the city, its obvious without my efforts she would not have what she does. I own 33% of biz and am to be paid a 5% cut of revenue. Revenue has been 250k+, i have received only 1k. I have bank access and have not withdrawn but am able to. The account climbs steadily and has over 40k currently.Should I just go withdraw the money Im owed? Are there any possible repercussions to doing so?If I withdraw the money, can I demand to be bought out from business? Do I or must I sue to be bought out or paid? Business value is increasing daily. This is one of my most successful businesses, and my most profitable. The basic agreement is filed with the colorado secretary of state.The company is Denver Cleaning Service Company.The agreement clearly outlines that i paid for and created everything for the business. Including the website, listings, business systems, paperwork, workflow, salesflow, and more.Fyi, this is my girlfriend doing this to me. Does that change anything? She also 'plays broke' not realizing I have access and know its very much to contrary. She sits by and has me pay for most of our bills and then tries to play my feelings saying she shouldnt have to pitch in. Making it seem like I am doing something wrong or trying to exploit her. I meanwhile, struggle on my end to pay our bills and keep my businesses afloat. While she uses my other companies warehouse as a dispatch area. And our home as an office, while stating she shouldnt have to contribute to either. She has become distant and seems like there may be more afoot. I cant tell if its cheating or if she if biding time to screw me out of the business somehow. I dont know what to do here. I feel foolish and taken advantage of. Damn follies of the heart. I guess some things are better to know now than later.Thank you for any and all advice.John
Customer: replied 1 year ago.
Oh,I opted to only take 33% ownership as it was originally 50/50 and she wanted to give her mom some of business. Well, she never gave her mom any of business and my shares were tucked in her pocket. She recently tried to do this again, saying she wanted me to give her more of my percentage, so she could give her mother and her brother part of business. I dont think i will be complying this time.If I choose to withdraw my money, then sue to be bought out, can I sue to regain the basics that are listed in the agreement at the secretary of state? Website, listings, domain, etc? Can I sue for entire business? I literally set up the entire thing and she just sat in the chair.Sorry for the bombardment of info, this is certainly an emotional and frustrating matter.I was going to attach a link to colorado secretary of state, but that portion of their website is currently down for maintenance.JohnPs, if you choose to use this stuff on your site, i simply ask that we remove identifying info like comany name and my name, etc. Thank you.
Expert:  Phillips Esq. replied 1 year ago.

Hello John:

Could you explain what you meant that you have access to the account where the revenue is being deposited?

Are you a joint account holder?

Is this a business account linked to the business or is this personal account that has nothing to do with the business?

Is the business set up as an LLC with both of you being members of the LLC?

Customer: replied 1 year ago. is a link to secretary of state.Attached to the sos, under filed docs, you will find agreement. The add file option is no longer available today. I downloaded the doc.Here is a link to dropbox file. you for your assistance.Fyi. She may have gotten into my phone or email. Shes acting wild. Most of her family is here illegally(she, her sister and brother somehow have permits) and she may try to do something crazy. She chased me with a knife twice in the past. Having joked about papers and after 5 years she may just run off, among other red flags that are adding up to be more than just a poor sense of humor.I love this girl, but am concerned at this point its a facade and that I may be a stooge. =(
Customer: replied 1 year ago.
being listed in sos of colorado, i am listed on the account. Chase will give me full access.
Expert:  Phillips Esq. replied 1 year ago.

Thank you for the information.

First and foremost, if she has had violent tendencies in the past, you need to find a alternate living situation immediately. Your safety is the number of priority. You cannot keep on living with this girl if she is that crazy.

If you have access to the account you can make a withdrawal from the account for your share of the revenue that she has refused to pay. Make sure to put this money on separate account so that it can be easily traceable if there is any dispute as to the amount that you withdrew. So, it would be prudent to open a new account with only the deposit from this revenue for easy and better accounting of your withdrawals.

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