QUESTION
I currently work for a private tax firm of which I hold 15% equity in the business. The primary owner wants to retire and shut it down.
Asked on Aug 14th, 2012 on Business Law - North Carolina
More details to this question:
I do not have the capital to buy the operation. Do I get 15% of the current profit left in the business on the last day and receive a K1 at tax time? He also put in my contract at the beginning of my employment that he would give me two months severence pay if he releases me without cause. Can you please tell me if I should seek legal advice and what am I owed if anything if the business disolves? He just told me that if the business disovles I get nothing. The way it was supposed to work is that I was to work for him for 10 years and then have 45% equity at which time I would purchase his 55% and then own the business outright. I have worked for him since Dec 2008 and now he wants to retire and end our contract early.
1 ANSWER
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It seems that you have some sort of agreement, but you do not provide all of the terms of the agreement. Or perhaps what you have summarized is some kind of informal understanding that you reached at the commencement of your relationship. In order to advise you regarding your rights under the circumstances, an attorney will need to review any writings you have exchanged regarding this subject in detail. It is not possible to advise you without review of the documents. You should, of course, consult with an attorney. As a practical matter, there may be little you can do about this situation, which I am sure you realize.
Answered on Aug 14th, 2012 at 1:14 PM