How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ely Your Own Question
Ely, Attorney
Category: Business Law
Satisfied Customers: 102349
Experience:  Counselor at Law.
Type Your Business Law Question Here...
Ely is online now
A new question is answered every 9 seconds

I started a NY LLC with a partner. We opened an art

Customer Question

I started a NY LLC with a partner. We opened an art cooperative. The members of the coop now think that they are members of the LLC. My partner and I claim that since we are the only signatories of the Operating agreement and we receive K-1 forms as opposed to their 1099 forms that we are the only owners of the LLC.. Are we the legal owners of the LLC?
Submitted: 11 months ago.
Category: Business Law
Expert:  Ely replied 11 months ago.

Hello and welcome to JustAnswer. Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

While owners of the LLC are often members of the coop, and vice versa, this is not always the case.

The LLC can simply be the company that organizes and controls the coop. Members of the coop may be parties who come abroad later to help get sales, trade, etc.

Only the following parties are "owners" of the LLC in the sense that they have the ability to speak for the lLC:

shareholders (but can only participate if the bylaws allow for it)



That is it.

So if there are coop members who think they can speak for the LLC or get paid by it without a contract but by virtue of them being in the coop, this is simply not true.

I hope this helps and clarifies. Please use the SEND or REPLY button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of TOP THREE FACES/STARS and then SUBMIT, as this is how experts get credit for our time. Rating my answer the bottom two faces/stars (or failing to submit the rating) does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith with a positive rating.