Legal Question in Business Law in Maryland

Withdrawing from a 2 Person LLC

Entered into a business partnership (50/50) set up as a Maryland LLC. Was not supposed to have to put more than couple thousand up of my own $$ because business partner knew that we ''would have no problem getting a business loan''. Well we got the $50K 5 yr business loan but bank required that they put a $25K each judgement on each of our personal properties. Apply for business credit card to help buy inventory (clothing retail store)which is also in my name/the business name. If I want to withdraw as a partner asking nothing but to be free of business debt and have remaining partner keep the business and run as a sole owner, can I do this? Am I obligated to pay off my 1/2 the loan to leave? She is telling me that I can't leave unless she finds a new partner willing to invest my 1/2 of the loan?? Business doing okay and covering it's bills each month, but there isn't enough left over to pay partners hardly anything and I've had to get a full time job to cover my personal expences so I can only cover the store a couple nights a week now. How do I get out of this partnership and get the lien removed from my home if I decide not to be a partner in LLC anymore?


Asked on 12/13/07, 4:42 pm

1 Answer from Attorneys
Paula McGill Attorney at Law

Re: Withdrawing from a 2 Person LLC

You state that you have a partnership, but set it as a LLC. What do the original bylaws and articles state? The form of the business organization is important to the responses to your questions. (Do you have a partnership or LLC?) This is such that I recommend sitting down with an attorney with all the relevant paperwork to determine your options.

I am willing to talk with you further and meet in the Baltimore area where I also have a practice.

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Answered on 12/13/07, 9:04 pm


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