algang2000
New Member
We recently went into business with another couple as a 50/50 joint venture. We formed a corporation and my wife is the president. When we took out the business the loan our partners put up their house as collateral. We sold our house and were in the middle of a move, so we did have any collateral. We have been very profitable since the beginning and only collected a salary one month. They would not share the financial information with us, but left the books at the shop last night by accident. We reviewed all the statement and transactions and noticed they were using the business account to pay their personal bills. Not only are they not claiming it as income, they say we have no right to tell them how to spend the money because their house is up as collateral. I believe because we part of the corporation we may legally responsible for the debt they are occurring and tax fraud. How do we resolve this issue? Can we be removed from the corporation?
