Staten Island, NY asked in Business Formation, Business Law and Contracts for New York

Q: I have to pay for other shareholders salary?

I own 25% of a business, a shop, in a 3 people partnership. If i were to no longer go in and offer manual labor but still keep the 25% I understand contributing 25% of the business expenses. But they say I have to also pay them them a salary based on how much percentage of the company they own. Is that legal? The business makes low profit, i dont even make minimum wage, I also put in the same amount of money as them in the beginning but talked into only having 25%, have been verbally abused by one of them for a long time and always put down which is one of the biggest reason of wanting to leave. What can I possibly do. I already wasted so much time and money here.

1 Lawyer Answer
Samuil Buschkin
Samuil Buschkin
  • Ridgewood, NJ
  • Licensed in New York

A: Hello. It does not sound like a situation for you to remain in. As for your question, it is not entirely clear what you are asking. You may want to speak with a lawyer because there will undoubtedly be issues requiring clarification. That said, business ownership does not have to go hand in hand with working in the business.

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