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 Tina Your Own Question
Tina, Lawyer
Category: Legal
Satisfied Customers: 8775
Experience:  JD, BBA Over 25 years legal and business experience.
Type Your Legal Question Here...
Tina is online now
A new question is answered every 9 seconds

In june 2010 I started a company fixing computer and other

Customer Question

In june 2010 I started a company fixing computer and other electronice devices. the person told me i can't get a lease as i am new to USA and he would put his name in the lease. we will be 50/50 partners, he only invest 4000.
after that he was supposed to work on equal bases but he had no knowledge of the business and technical work. after a year i sent asked him to break partnership and he said he would do so only if i pay him $195000, he argued to use Rule of Thumb to value the business. but i had already paid him 3700.
So he never replied back saying his lawyer will contact me. i stopped partnership with him on jan 1st 2012 but he and i also stopped using the DBA that was under his name in 2013.
Yesterday July 5th 2015 i got a letter that he is now suing me for One Million..
Submitted: 2 years ago.
Category: Legal
Expert:  Dimitry K., Esq. replied 2 years ago.
Thank you for your question. Please permit me to assist you with your concerns.
I am sorry to hear that you are being sued. How can I help, exactly? What exactly do you mean that you 'stopped' the partnership, what did you do?
Customer: replied 2 years ago.
Mansoor Safi 7/24/12
To: ***** *****Thanks for your quick response.Lets first deal with iFixers.As you mentioned our agreement was 50/50% partnership. under the following term1) Each party put $4500
2) Every party own 50% of the company
3) The partner running day to day business will take a salary
4) Profit and loss will be mutually share after paying all the expense (including the salary of the party working)
5) In 2010 we have a total sales of $35700
5a) Out of $35700, I took the least salary, since business was new and wasn't generating enough revenue.
5b) In 2010, We had other people working as well when i was at school. And some times I would pay them from my salary just to keep the business running.
5c) at the end of the year we are left with $6000 in profit. (but I have also paid taxes on that)6) In 2011 total revenue was $78890.
6a) Expenses were $81084 (including $24000) my salary
6b) based on the numbers we have made a lose of $2194
6c) As per our agreement terms you mentioned, we will share every profit or lose.
6d) 2011 was a lose year for our business.Now we come to $19500 the figure you came up with applying THE RULE OF THUMB.
As far we I have studied this rule isn't really used. And Mr. Patrick has to explain to us, how he applies this rule to such a small Business. I hardly find it usable for any multimillon business.After selling your 50% share we also have to decide about the liability with the rent that will be transferred to iFixers.The Options available to move ahead:
a) We will dissolve the business by finding a buyer for it.
b) We will remain as partners and will share all the profit and lose of 2011. and then Decide how to move ahead.
c) You can play as an investor, and get a return on your $4500 investment ( we will decide the rate of return on investment).
Expert:  Dimitry K., Esq. replied 2 years ago.
I am unclear, was this your conversation in 2012? Or just now? I am trying to figure out if the partnership was actually 'stopped' and the business was dissolved, or if it continued? And, what is the current revenue--I guess I am trying to understand where the million dollar claim is coming from, or on what it is based on. Thank you!
Customer: replied 2 years ago.
(Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Customer: replied 2 years ago.
All our conversation was in 2012 and since then I have never seen him or head from him.
Expert:  Dimitry K., Esq. replied 2 years ago.
Hi, I do apologize but I do not engage in phone calls. However, if you wish, I can communicate via Skype as an additional service provided that you understand that I cannot act as your attorney, I cannot represent you off-site, and our conversation does not create any attorney/client relationship Please advise.
Customer: replied 2 years ago.
Here are some facts that I can add to give a better picture of the situation.2010 [start]
started iFixers in june 2010
I was the only person behind the idea, and had all the technical and operation skills.
Mr. Wakil didn't know any thing about the business of repairs.Things that were under Mr. Wakil Name:
Factious business name
store lease agreement [5-years]
he spent like $3000-40000 plus $500 for lease depositThings that were under my name:
Business license from city of santa clara
EIN number [he asked me to fill it as sole proprietorshipOperations:
I used to work 7 days a week none stop
responsible for 100% of business operations
Responsible for all the expenses
i case of short revenue i would cut from my paycheck to pay for those
During this year he would come and ask for money to pay his bill, and would demand in cash. I would give him without knowing this could be a problem later.End of year:
Filled the taxes as sole proprietorship
the only profit was my salary [which should be counted as salary]2011:
During this year all the operations were operated by myself without any involvement from him. I would work 7 days a week, some times 12-16 hours a days to get things done.
Total Revenue was $79000, the only profit was my salary and the end only make $3000 profit.End of year: filled taxes as sole proprietorship. during this year Mr. Wakil took some money but i didn't have the count. [i know i poorly managed it, i should have been a lot more careful]Looking at how we were working and how the business was managed I decided to break the partnership and when I proposed this to Mr. Wakil he said no Problem we can do it by rule of Thumb. which was calculated as(gross sales of 2011)/2)/2
which makes it
(78000/2) =39000/2 = $19500.00
I already pay him back $3700 out his initial investment of $ 2013 I stopped using the DBA that registered and moved from the location where we originally started. I operated under a different name ever since and now my business is Run solely by my self under and LLC.Today my revenue is around 200K a year.I have never singed any officially contract or agreement with him. Its just all in our email communications. also One day he came and told me to write a paragraph that He he wanted to have His daughter be my partner not him self. i worker on a white piece of the paper the followingDear Sir/ Madam ,I would like to have [Her daughter name] as a 50/50 partner in at my business and then signed it without a date.What are my options and what are the consequences.
Expert:  Dimitry K., Esq. replied 2 years ago.
That is a problem, to be sure. I have sent you an additional service request to discuss via Skype, as I believe that would be faster and ultimately better for you to understand all options under the circumstances.

Related Legal Questions