Legal Question in Business Law in Pennsylvania

dissolving business

(1) Signed an operating agreement and have all the necessary licensing to open Title Insurance Company. 3 partners in LLC: Attorney with license to complete settlements, Real Estate Broker and myself in the business for 13 years. We have had problems from the very beginning. Still have not opened the business. I am the little guy here and have invested all of my money into the business. I own most of the shares (51%) R.E. Broker (19%) and attorney (30%). Attorney stated he wants out and all he wants is his capital contribution back. Had the attorney for the business draw up the necessary docs to release all parties from each other and to give him back his cap. contribution. Now he has changed his mind and states he has a bona fide offer (20K) for his shares. Why would anyone want to invest in a company that has not opened. Can we just dissolve? The 70% shareholders would like to dissolve and restructure. The 70% shareholders are still paying all the bills, rent, utilities, leases etc. This is getting costly. Help!!!

(2) Attorney convinced me to leave my job in order to start this new venture 3 months ago and I did on good faith and trust in him. What can I do. No income for 3 months. Help!!!

I invested all my money into this.


Asked on 11/13/06, 12:55 am

1 Answer from Attorneys
Matthew Kelly Kelly Law

Re: dissolving business

All very good questions, but they can only be answered by reviewing the operating agreement. I don't find it odd that someone would want to buy him/her out even though business not operational. You probably need an attorney to at review the agreements (including leases etc.) to advis eyou on your options. I am a business consultant/counselor at law with significant experience in what you are going through. Contact me for a free consultation 610.647.5800.

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Answered on 11/13/06, 8:30 am


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