My husband went into a construction business with a friend in June 07. They formed an LLC with the state of Ohio. The partner actually filed the document but both he and my husband are authorized representatives.
Unfortunately, they never signed any agreement with each other, or for the company - NOTHING.
My husband put in 8k start-up money. He also acts as the saleman for the company (but receives no pay).
The other guy, as his contribution, quit his former job and actually does the work (but he still earns normal pay, just from the "new" company).
At the end of August, our partner received payment for a job the new company did and instead of turning it over to the company to pay bills, paid himself and 2 employees a weeks pay and then kept the remaining 6k. He used the money to buy a car, which he said he was going to sell for a profit "for the company" but as of today still has the vehicle. He discussed none of this with my husband.
Because of the loss of 6k the company was 3 weeks behind in paying the partner his actual wages, and very behind on outstanding bills. We did receive a A/R check this past week and paid one week of back wages and a few of the oldest bills, but the account is empty again. Our partner is mad that we didnt use all the check to pay him and wants "out".
The question is what rights do we have? He has put in no money, has a 6k vehicle in his possession as well as the company vehicles and tools. We just want him out of the company but his name is on the LLC document. And did he do anything legally wrong by taking the check slated for the company? Or was it just morally wrong.
HELP!
Unfortunately, they never signed any agreement with each other, or for the company - NOTHING.
My husband put in 8k start-up money. He also acts as the saleman for the company (but receives no pay).
The other guy, as his contribution, quit his former job and actually does the work (but he still earns normal pay, just from the "new" company).
At the end of August, our partner received payment for a job the new company did and instead of turning it over to the company to pay bills, paid himself and 2 employees a weeks pay and then kept the remaining 6k. He used the money to buy a car, which he said he was going to sell for a profit "for the company" but as of today still has the vehicle. He discussed none of this with my husband.
Because of the loss of 6k the company was 3 weeks behind in paying the partner his actual wages, and very behind on outstanding bills. We did receive a A/R check this past week and paid one week of back wages and a few of the oldest bills, but the account is empty again. Our partner is mad that we didnt use all the check to pay him and wants "out".
The question is what rights do we have? He has put in no money, has a 6k vehicle in his possession as well as the company vehicles and tools. We just want him out of the company but his name is on the LLC document. And did he do anything legally wrong by taking the check slated for the company? Or was it just morally wrong.
HELP!
