Legal Question in Business Law in Utah

LLC Partnership

My husband and his brother started

a tanning salon that didn't do well

and $51,000 was left in debt. The

LLC was 50/50. My husband and I

have paid 50% of the debt and his

brother wants us to pay an additional

$9,600 for the time he worked at

the salon. There was an equal

amount or more time on our part

spent dealing with the business.

What is our legal right.


Asked on 3/03/08, 12:25 pm

1 Answer from Attorneys
Randy Lish Randy M. Lish, Attorney at Law

Re: LLC Partnership

He has no more right to a guaranteed salary than you do, unless there was a contract to that effect, or the operating agreement stated so. Accordingly, I would tell the brother that you wojld pay the $9600 in additional salary for his time, if he would pay your husband equally for his time. Then include a bill with the additional hours, and he will probably back off when he has in front of him something showing that he really owes you. Legally, he has no right to additional money, and can't force the issue.

Randy M. Lish

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Answered on 3/03/08, 12:33 pm


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