QUESTION
In an LLC without an agreement can I take a contract I brought to the business away?
Asked on Jan 01st, 2015 on Litigation - North Carolina
More details to this question:
My wife and I started a business dba using her name. I obtained a huge contract with a large retailer. I had two friends that I decided to go into an LLC in NC with each person having 33.33% and no operating agreement was ever set in place. One partner brought $6000 roughly, the other brought his retail store to the table and I brought the contract. From day one each partner has took a weekly draw of $1000 and nobody has lost money. I cannot deal with one partner, can I just pull out and take my contract, one partner take his store back and the other take his $6000 and we split all other profits?? I really just want to take what I brought to the table and walk away with it nothing more or less. Please help.
1 ANSWER
You are not able to unilaterally end the relationship. If the other members vote to end the LLC, then yes. However, without an operating agreement, you are left to operate as the statute demands. 57D-5-05. No right to voluntarily withdraw capital or terminate obligations. Except as otherwise required by this Chapter or other applicable law, an interest owner may not (i) withdraw or compel the company to purchase or otherwise liquidate all or any portion of the equity owner's capital interest or (ii) extinguish, abandon, or otherwise diminish the interest owner's obligations in respect of the interest owner's ownership interest. (2013-157, s. 2.) In other words, the other Members must agree.
Answered on Jan 05th, 2015 at 8:52 AM