Question

LLC which way to go please assist?

My business partner started a company and then brought me in and we are equal. While his investment has been financial, all along for nearly 3 years, I alone have run this company. No matter how many times I have spoken to him he never does a thing about it.

Now because I told him that I can no longer work under these conditions with no input or help, he is offering me the majority of the company. That's nice but it still doesn't solve the other existing "I've been a slave," problem.

Once I go, I know he can't handle this company whatsoever and it will just sit there, so am I better off taking the majority even if I leave?

11 months ago - 1 answers

Best Answer

Chosen by Asker

It sounds like you really need to sit down with someone you trust that can really look at the business. Your brief story raises more questions than we can provide answers.

Its easy to tell someone to take the "majority" but what is that? How do you define what more of whatever is? If you have a service business, there is no inventory; only a client list and some know-how. The partner that started the business deserves top billing, early, for coming up with the idea, taking the risk and spending the money. That changes as time goes on.

If your business does have an inventory, the costs of keeping that company stocked and going needs to be taken care of immediately; off-the-top. Then operating costs and then the division of what's left. If there is an imbalance in who really works the company, install a time clock and establish a fair wage for each partner. Then either pay that wage, or put some away in a retirement plan. One that allows you to take the money if you walk!

BE aware, though, that there is a case to be made if the founder is an old-timer in the town and a vast majority of your companies income comes from his friends and former associates. That networking is worth as much as a go-getter sitting behind a desk thinking no one else is doing any work.

Understand??

11 months ago