Legal Question in Business Law in Washington

Chick Fight!!

I owned an S corp that had 2 business attatched. I was running the second business while she took the lead on the other. At that time we verbally came up with a solution/payment for the other, profitable business (this was only until we had taxes paid off and then we were to sign formal paperwork). Over the past 2 years I have had several meetings with a lawyer trying to resolve this in writing from which she has failed to sign anything. The lawyer has advised me that they feel its not going to happen and that I need to seek out another lawyer to try and resolve this since they cannot be involved as they were representing the two of us. The business I was running recently failed. I also found out that she disolved the S corp by not filling out the renewal paperwork without my knowlege and took out a business licence in her own name and started running the business as her own. 4 months ago I stopped receiving profits/payments from the business. Also, there is also a debt that has not been resolved with the failed business.

If the papers were not renewed is the corporation disolved? Do I still own 50% of this? Where do I stand? Did she take the business away from me illegally? What are my next steps that I should take?


Asked on 3/26/09, 1:53 pm

2 Answers from Attorneys
Susan Beecher Susan L. Beecher, Atty at Law

Re: Chick Fight!!

Briefly stated, your next step is to follow the first attorney's advice and get an attorney to represent you.

I really wish I could be more helpful than that, because I like to be able to provide some practical guidance when I answer lawguru questions. However, in this case, just on the basis of what you have written, you probably have a lot of options. However, a lawyer will not be able to tell you what those options are without seeing whatever formation and licensing paperwork exists for the companies, discussing how you and your business partner worked, what written communications you may have had, what each contributed to start up...the list goes on...Many attorneys will do an initial consultation without charge, and that is the time for them to ask these questions and then suggest a course of action.

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Answered on 3/26/09, 2:24 pm
Amir John Showrai The Pacific Law Firm, PLLC

Re: Chick Fight!!

Your very next step is to find local counsel, set up an appointment to meet to have them review all documentation related to the formation of the corporation, whatever agreements you have in place or had in place, and once that lawyer goes through everything, they can give you some options for you to consider.

The situation is far too complex for anyone to be able to tell you more than that on this web site. That's the bad news.

The good news is that once you properly consult with an attorney, you will at least have information from which to make an informed decision about how to proceed with an eye toward costs or reasonably expected costs for each option available to you.

Best of luck!

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Answered on 3/26/09, 2:44 pm


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