Legal Question in Business Law in New Jersey

Re: 50 50 llc

Fairness is not the issue! Did you have a lawyer set-up your LLC? Is there an Operating Agreement with Buy/Sell provisions? The Operating Agreement will dictate the responsibilities of the Members.

In my 30+ years of experience representing closely held businesses, it is very rare that all of the principals bring in the exact same amount of money. Just as in your case, someone feels like they should get more because they brought in more money. I am sure your co-owner feels she is contributing in non-monetary ways that are not being recognized.

The first question to be asked is " do you trust your co-owner?" If the answer is "no" you should buy her interest and continue the business on you own. If you trust her, then you should discuss your concerns and possibly develop a different method of compensation.

As a tax and business attorney, I have helped many business owners (including law firms!) develop strategies for more equitably dividing business revenues. You should seek legal counsel right away.

I hope this helps!

Ron Cappuccio

http://www,BusinessEsq.com