Corporate Law sueing fellow LLC Partners

[willbegg]

I am a 25% owner in a LLC in Tennessee. Recently, after reviewing checking account transactions online, I noticed that my partners, a married couple, have charged over $8,000 on the company debit card for personal use to include hotel bookings, airflights to vacation destinations, meals exceeding $100, fuel charges, vehicle repair, the list goes on.

I have, for the most part, been forced out of the daily activities of the company, and view myself at this point as a "silent partner". I have talked to the about buying me out, but to no avail. The LLC has not showed a profit since opening 3 1/2 years ago, and I have drawn no money from the operation. They, as well, have showwn no "income" from the operation, but are certainly spending funds missapropriately.

What is my legal recourse? Just want to get my info together before I approach them.

 

[umbra123]

Don't know if you're still checking in here as I see you got no response.

Are you receiving K-1's from the LLC?

Does your operating agreement give you certain rights to review the books and records?

Who are the manager's of the LLC?

An LLC must still hold annual meetings. Have you received notice of them? It should be in the operating agreement, even if it was a boilerplate copy. Get a copy from the incorporator/agent of service.

You could potentially have a tax exposure if they are deducting expenses that are not business related.

Good luck to you.