Q: LLC partner never paid his share of funds for the business and is now In prison for many years 2 mos after filing LLC.
How can I remove him from the LLC without dissolving my company? I asked him to sign papers to remove him and he refused. He never paid anything toward the business or filings for any of our licenses. He is in debt to the company for his legal fees and using the business credit to fund personal activities prior to going to prison. How do I get him out? My name is on everything, including EIN- his name only shows in one town tax document. The LLC and County registration just shows my name. What are my rights to remove him? He isn’t eligible for a parole hearing until 2021, and release date isn’t until 2023.
A: You could file a lawsuit against him to have his membership interest terminated. Consult with local counsel to review the LLC's operating documents to determine your best course of action.
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A: You might want to check out what assets he still owns prior to filing suit for any money awards. Getting a monetary judgment will be the easy part, collecting on it may be impossible. Contact a competent attorney.
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