Odessa, TX asked in Business Law for Texas

Q: What do I do if my LLC partner is "bullying" me and taking advantage of his control of the revenue & refuses to pay me?

My business partner, since the beginning has been controlling to the point of ludicrous at times. He makes unreasonable demands and imposes "stipulations" that must be met before he will issue a payroll check to me (which my pay is clearly outlined in the operating agreement). He has sole reign over the money and this is my only income! He once again refused to issue my paycheck today until I met another requirement that he just comes up with randomly on payday and then refuses to issue any check until it has been met.

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1 Lawyer Answer
Douglas J. Shumway
Douglas J. Shumway
  • Salt Lake City, UT
  • Licensed in Texas

A: The situation that you are describing is unfortunately very common. I would recommend that you reach out to a local business law attorney to have your operating agreement reviewed. That being said, LLCs are governed by statutes and agreements so if an agreement is silent then you must look to the statute. There are waivable and non-waivable rights so even if the operating agreements says you waive a certain right but the statute says that such right is non-waivable then you probably still have that right. Additionally, there are management rights and member rights, each with its own unique opportunities and obligations. You likely have a number of avenues to fix your situation but without seeing the agreement and reviewing the statute no lawyer will be able to appropriately answer your question. The foregoing answer is provided by Douglas J Shumway, Esq.: (801) 478-8080. The answer provided is not intended to form an attorney client relationship and should not be construed as legal advice. Mr. Shumway is licensed only in Utah. Mr. Shumway's law firm has offices in Salt Lake City, San Antonio and Las Vegas.

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