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Roy Hadavi
Roy Hadavi,
Category: Business Law
Satisfied Customers: 775
Experience:  Attorney at Law Offices of Rosenstein & Associates
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My 50/50 business partner and I are no longer able to work

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My 50/50 business partner and I are no longer able to work together. We are getting a business valuation done so that he can sell his share of the company. But he is doing everything he can to make waves. 2 months ago I took on a manager role in order to be down at the business everyday managing employees and operations. It was a verbal agreement (although I am sure I can find some written correspondence in which he is obviously aware of our agreement) so nothing in the operation agreement was changed. But we agreed I would take a $55,000 salary on top of my 50% distribution. He is now demanding I stop receiving my salary due to a part of our operating agreement which states:
Compensation of Members for Services Rendered
Members will not be compensated by the Company for services rendered to or on behalf of the Company, except reimbursement for expenses directly related to the operation of the Company.Is he right and does this apply?

Hi. My name is ***** ***** I am a licensed attorney. I would be happy to provide assistance. Please give me a moment to formulate a response.

I am sorry to hear you are having difficulty with your business partner.

He is 100% incorrect. The clause refers to a member receiving compensation as a member. However, you are able to be an employee of the LLC and receive a salary as an employee.

Thank you so much for allowing me to help you with your question. I have done my best to provide information which fully addresses your question. If you have any follow-up or clarification questions, please ask! There is no additional fee. If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service as Good or Excellent (i.e., 4 or 5 stars)(hopefully Excellent/5 stars!). Otherwise, I receive no credit for assisting you today. I thank you in advance for taking the time to provide me a positive rating!

Customer: replied 2 months ago.
upon our verbal agreement I became both an owner and an employee at the same time? And as an employee I am able to receive a salary? Just want to confirm I am reading it right.

Yes, that is correct.

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