Legal Question in Business Law in California
I want to bring on a partner to my existing business. My business is ABC has recently became ABC, LLC with this partner and the buyin amount was 15000.
The 15000 is being used as needed by the company unto our growth move. Here is my question:
When a person buys into a company do thy have control rights on how the buyin funds are used?
There argument is that they bought into ABC, LLC and not ABC, therefore funds are being misused, even though we are the same company, same business license, with a different corporate structure?
1 Answer from Attorneys
An LLC has members (partners) who own the company in proportion to the number of shares they have been issued. If you are equal partners, then you have equal say about how funds are used and management of the company.
A business license issued to ABC is NOT good for ABC, LLC and you will need to get a new business license for ABC, LLC separately. They are not the same company, even if the LLC assumed all the operations of ABC.
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