QUESTION
Me and a business partner own a company 50 % each. We bought a building under the company name and I put $200,000 down payment and he put $10,000 dow
Asked on Jul 29th, 2012 on Business Law - New York
More details to this question:
Me and a business partner own a company 50 % each. We bought a building under the company name and I put $200,000 down payment and he put $10,000 down payment. We bought paid the mortgage and repair the building. The build is now being sold and he is saying I can only get 50% of the profit and not my $200,000 down payment back. I have copy'' s of the checks I paid the down payment. Can I get my down payment back first and the split the profit ?
1 ANSWER
Michael Stolzar
It might depend on whether or not you have a shareholders agreement and/or how you accounted for the differences in your payments. Was your large contribution a capital contribution or a loan to the corporation. Is there any writing to show how it was treated? The answers to these questions might determine how the .proceeds from the sale of the building are treated and perhaps distributed.
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Answered on Jul 30th, 2012 at 11:20 AM