Legal Question in Business Law in California

You have to do things a certain way to prevent him from making any claims to the new business that I wont put in this public forum. You may contact me for a free consultation.

Best,

Daniel Bakondi, Esq.

[email protected] 415-450-0424

No attorney-client nor confidential relationship is created through this communication. Nothing communicated or provided constitutes legal advice nor a legal opinion unless it so specifies and written agreement for attorney services has been entered into. Your issue may be time sensitive and may result in loss of rights if you do not act in time. Thank you.

You can do that but you have to be careful. Without knowing anything about your business it is hard to advise you of the pitfalls you face; it is not as easy as voting him off the island. The problem is that the assets of the company belong to all three of you. Since the business didn't make any money you may think it has not assets, but that may not be so. Potential customer or client information, any ideas or inventions or whatever else you were going to market and make money from in this business, and the general "business" itself, are all assets of the current LLC. The two of you can't just grab the marbles and leave the other guy with nothing, without risking liability. Depending on all the facts and circumstances that risk may be minimal, or at least worthwhile. But I would need to know the details of the situation in order to give you any kind of evealuation on what that risk level might be and how you might deal with or minimize it.

If you have a properly prepared Operating Agreement, the answer should be there. If you don't have a comprehensive Operating Agreement, you should. There should always be provisions for removing or buying out members.

No attorney-client nor confidential relationship is created through this communication. Nothing communicated or provided constitutes legal advice nor a legal opinion unless it so specifies and written agreement for attorney services has been entered into. Your issue may be time sensitive and may result in loss of rights if you do not act in time. Thank you.