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Dwayne B.
Dwayne B., Attorney
Category: Legal
Satisfied Customers: 33401
Experience:  Began practicing law in 1992
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I am a 50% owner of an LLC with no agreement in place. I only

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I am a 50% owner of an LLC with no agreement in place. I only agreed to go into business with him because he represented he has a high level clientele for the sculpture I import. I pledge some inventory as to level things off with him providing clients.As the months wore on, it became obvious that he didn't have these clients. Over the course of a year he put in $50K for start-up expenses, trip to Africa, website, marketing, etc. This has been collateralized by new inventory we bought with his money. He has about $65K in inventory at the lower end sale price and is owed $46K. I did put in 2 pieces that he has already sold 1 for $6K and should get at least the same for the second. We did the 2011 tax return and the inventory on the books is all the inventory that he owns and controls and none of mine is part of it. I have some inventory in his building that he now says I cannot remove until he gets his funds back. I told him he cannot control my inventory. He said he would sue me if I didn't like it. This guy is in a lawsuit with just about every partner he has. I don't want to be in that group but my gut feeling is that due to lack of an agreement and only emails going back and forth and the fact he agreed that my inventory was mine and his was his is that he has no case. My question is 2 fold: he says I promised inventory collateral but pulled it back, which is true but only because I told him up front I had plenty of inventory and didn't need to bring more, I needed his clients. He never produced not 1 sale except for $400 to his brother. My thinking is he has enough inventory to get his money back plus a return, all he has to do is to sell to his clients like he said he would. What should I do? I want to get my roughly $5K worth of inventory out of his building and get out of the LLC. How?
The only way to do it is to file a lawsuit seeking to have the court order the dissolution of the LLC or to have one of you buy the other one out. You can certainly seek to have the court order that all or a portion of the inventory be given to you. You can also seek attorney's fees.

There is no way to achieve what you want without a lawsuit.

Thank you for allowing me to assist you. As you know, we work on the honor system here and cannot always provide you answers that you like but I believe I have answered all of the questions you asked.

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Several customers have asked how they direct a question to me in particular. If you specifically want me to provide information for you just put “FOR JD 1992” in the subject line and I will pick up the next time I am online.
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