Corporate Law llc partner...

[grace1021]

I opened an llc with a friend, used a lawyer, but he did not include me on anything on paper, because I am Canadian. Now partner has locked me out of all activities. (access to customers, finacial, etc..) My concern is that we opened a loan and both signed for it loan amount 6500. He is currently paying it however, can he sue me for non-payment when he pays off the loan? He has the business name taxes, customers, assets etc... Is there anything I can do?

 

[David_Staub]

He can sue but will he win? That is really the question. If the proceeds of the loan went to the business and the business pays off the loan, where is his harm? Obviously it would be better if everything were documented, but on these brief facts it is difficult to see how he could show that you owe him anything.

If, on the other hand, the LLC goes under and he has to pay off the loan out of his own pocket, then it is conceivable that he would be successful in arguing that you and he should share the loss. Again, without documentation, anything is possible.

 

[grace1021]

He has , is closing the LLC and using the assest in a sole proprietorship he opened in his name, all the assests the signs the phone number the customers etc. is that legal or embezzlement?