Partnern Wants 50 of Business
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Partnern Wants 50 of Business
My cousin and I started our own business LLC. However, I have paid and put in about 75-80 of all funds, while also dedicating much more time than my cousin. Now my cousin says she is done with the business but wants either half of all the current funds or assets. She claims she is a 50 owner and it doesn’t matter how much money or time she’s put on. Is this true?
Asked on April 16, 2017 under Business Law, Alabama
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
The owners of an LLC are those listed as members in the operating agreement of the LLC and/or on its registration. Members normally own in the percentage equal to their pro rata share, unless the operating agreement specifically says otherwise. For example, if you are both listed as members and you are the only two members, then unless the operating agreement says something otherwise, she is a 50% owner (each of 2 owners is normally a 50% owner) and would be entitled to 50% of the company or value.
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