Q: I am an equal partner of a FL LLC with 2 others. They gave themselves raises and a bonus without my knowledge.
Business question here. I am an equal partner of a Florida LLC with two other people. I was out of town for some medical reasons for about a month, but I still continued to work. Anyway the other two decided to give themselves raises and a bigger bonus at the end of the year. I am just finding this out with the W2’s being sent. Is there any recourse that I can take? Can I give myself an equal raise and withdraw to equal their amount even if they don’t agree since we are equal partners? We have a standard llc constructed with legal zoom and we are sharing the gains or losses equally, but the other 2 felt like they needed more since I was out of the office even though I continued to work. I need to talk to them, but I want to make sure I know all of the possibles. Can the 2 of them decide to do that with consulting me? Do I have to agree with it because of some kind of majority rule? Thanks so much for any kind of reply.
A: What does your operating agreement say about distributions? That should be your first place to look at. If you guys don’t have one, this could potential cause a big issue especially since it’s a partnership, so have an attorney draft one for you guys that governs the different decisions that you all make. There will be other questions that need to be answered regarding the raise that was taken out. Was this salary for work done? How are you guys paid? Do you guys have an agreement that only majority needs to be present to vote as opposed to all for Salary or distribution amongst other things? It’s best to contact a lawyer to go over the exact scenario and get proper legal guiadance.
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