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 Richard - Bizlaw Your Own Question
Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 10602
Experience:  30 years of corporate, litigation and international law
Type Your Business Law Question Here...
Richard - Bizlaw is online now
A new question is answered every 9 seconds

We are part of an llc with my husbands family in Ohio. His

Customer Question

We are part of an llc with my husbands family in Ohio . His brother was made the managing member against our wishes he is charging all my in-laws bills to the llc and paying through his business he said when something happens to them we will have to pay his business back. The bills are racking up , is this legal ??? My the time he's done the llc might own more than a our shares are worth. My in-laws are not that wealthy
Were can we go for help with this matter ?
Submitted: 8 months ago.
Category: Business Law
Expert:  Richard - Bizlaw replied 8 months ago.

Hello, my name is ***** ***** I will try to help you. Please remember I just report or interpret the law, so the outcome may not be what you hoped for.

Are you saying that the LLC is paying the personal bills of your inlaws that do not relate to the business? If the LLC is paying the bills, why would anything be owed your brother-in-laws separate business? Are you in laws also members of the LLC? If so do they receive distributions from the LLC?

Customer: replied 8 months ago.
It is suppose to be set up so when they pass we aren't taxed to death. So it's a personal llc. That is how we were told and we get 15,000 per yr but only on paper
Customer: replied 8 months ago.
Their worth is probably no more than $1 million
Customer: replied 8 months ago.
There are 4 siblings plus my in laws on the llc.
Expert:  Richard - Bizlaw replied 8 months ago.

I am not sure what result you want. However, here is what should be happening. If the inlaws are receiving more in distributions in the form of cash and having their bills paid, then their capital account would be reduced when the capital accounts of all other participants remain the same, assuming the LLC is making a profit. This means their percentage ownership interest in the LLC is being reduced relative to the ownership percentage of the other members. Any member would have a basis for objecting to the in laws receiving more than their share of profits.

If I have answered all your questions, please positively rate my answer as that is how I receive credit. If you have more questions, please let me know. If the answer was especially helpful you can provide a bonus.

Customer: replied 8 months ago.
This is what I'm not getting it is NOT a business it is just a llc set up to give us portions of there estate so when they die they are 85 and 88 we avoid lots of taxes
Expert:  Richard - Bizlaw replied 8 months ago.

Are you saying the only assets in the LLC are the assets of your in-laws? If that is the case, then whatever money there is would belong to them anyway. I am not clear on what you are saying should be happening.

Related Business Law Questions