Legal Question in Business Law in Utah

business partnership

I have been working with 2 other

partners in a company which we

started together and have built to a

very substantial business over the

past 3 years. Partner 1 has his name

on all the documents as owner and

''eventually'' we are to have our

equal shares when the legal

documents are finished and signed.

The company books have been kept

as equal partners with monies paid

out as such and we have built cash

equity in the company. What are my

rights for distribution of that equity, if

I were to leave, not having signed as

an owner, but been participating in

the growth and equity of the

company? There is verbal

commitment between the 3 of us,

we are recognized by all employees

as owners, as well as record in the

books as the company running as a

partnership.


Asked on 3/01/09, 11:00 am

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: business partnership

If the company books reflect your position as that of a partner, you should be entitled to 1/3 of the net equity in the business. If your position is not clear, and if the other owner(s) disagree, you may then have to prove your interest. If you receive a K-1 for your taxes, that is presumptive of your ownership. If you receive a W-2 then your situation is more precarious. You may call for a free consultation.

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Answered on 3/02/09, 10:29 am


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