Legal Question in Business Law in Iowa

sweat equity invested in start up company

I have invested sweat equity into a company since 3/04. There were 5 to start out. One has left. One was brought in 8/04 and named v.p. The origingal person and his wife have signed a bank loan and we are now manufacturing. I get hourly since 7/05. I have no contract, medical(even though it was part of the original plan), title, job description, etc. I left my full-time job 11/04 to be manufacturing by Dec, then Feb, then May and finally July. How do I protect my investment of time and lost wages/benefits, etc. I have startup meeting notes but nothing in writing to show what was intended to happen to my investment.They do pay commission for my sales but keep cutting back as I am a ''paid employee''.They don't acknowledge my ''invested member of group'' status. Where do I go from here?


Asked on 10/03/05, 12:24 pm

1 Answer from Attorneys
Robert Luedeman solo practitioner

Re: sweat equity invested in start up company

I'd need to know a lot more about your situation to give you a better fix on your rights and responsibilities if any. You have not said how the business is organized or whether you have any money invested.

You are asserting that you have sweat equity. Is there some contractual basis for asserting this claim?

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Answered on 10/03/05, 12:49 pm


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