Legal Question in Business Law in Maryland

Re: Business partners co-owning vehicles.

This is a matter that is usually addressed in a Limited Liability Company Operating Agreement, if the Company is an LLC or a Shareholders Agreement if the Company is a Sub Chapter S Corporation. Your client needs one of the above metioned agreements to resolve matters like this. If your client is not established as an LLC or S Corporation, then his entity needs to be established. Partnerships impose liability on each of the partner for the acts of the entity. In order to limit his liability your client neeeds to get an entity established.

Your client is making contributions to the LLC, partnership, or S Corp in the form of tax payments, insurance expenses, and tags. These are additional capital contributions. In my standard LLC operating agreement, when one owner makes additional capital contributions and the other co owner does not, then the co-owner making additional capital contributions gets a larger share of the profits, losses, gains, distributions, etc.