I started a vending machine business
with a partner in Feb. 2014. We took in another partner later that year. We had an operating agreement
drawn up from a reputable business attorney. My first partner was President and I was Secretary according to the agreement. By September of 2015 I became totally fed up with performing all the work. That included filling most all 30 machines, which were spread out up to 50 miles from my home, on a weekly basis, working usually 7 days a week. I also did all the ordering and pick up of product, new machine installs and moving machines between locations including repairs. I also collected and deposited all the money. The other two did very little.
According to our Operating Agreement one of us could leave the business and forfeit all assets and liabilities. I took that option due to the fact that they were just not going to help with the routine daily operations of the business.
Soon after I left the business, they closed it down.
So here are my questions:
1. Should I get a K-1 for the 9 months of the year I was with the business? I've tried to get one for my 2015 taxes but was told the president did not include me in the taxes for that year. I'm sure there was a huge write off for the two of them, otherwise I'm sure they would have included me. Did I also give up anything to do with taxes.
2. In the beginning my first partner and I took out a SBA loan through Wells Fargo for $10,000. Now the government is garnishing my Social Security until the balance of over $9,000 is paid. Is this a liability that wouldn't be covered by our agreement because it's govt backed? Do I have any options on handling this?
3. I made a big mistake by purchasing a company vehicle in my name and the business name. I voluntarly turned in the vehicle and am in collections for about $4,000. I did that because I couldn't trust them to deal with it appropriately after I left and could have ended up much worse off. So I took the hit to minimize the damage. Not concerned with trying to recoup that money. Just providing you with information.