Legal Question in Business Law in Florida

Recently, I entered into a limited ownership company. I was offered 5% of the company for $5,000.00 as a Director and Vice-President of the company, I spent $400.00 of my own money on creation of a labor contract and vendor's license and business license. I then gave a $4600.00 check to the owner and we deposited it into a joint business account. No formal papers were ever signed showing a stock purchase or transfer of ownership took place. Soon after the deposit, the co-owner began to spend the money on personal expenses. I warned him not to do this. Finally, when the balance got down to $1008.00 I told him I was pulling out of the company and wanted my money refunded. He told me to go and withdraw the remaining monies, which I did. I asked him for the other $3,592.00. He said he didn't have it but when he got a business loan he would pay me back. I asked him to pay me $100.00 per month and he said he could not do that. What are my legal rights to receive the money back?


Asked on 12/29/10, 5:29 pm

1 Answer from Attorneys
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I can say this. Hopefully, you've learned a lesson from this experience. Don't know what you mean by "limited ownership company." Are you referring to a LLC, a partnership or ? These details are necessary in order to answer your question. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 1/04/11, 6:56 am


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