I am a 50% member in an Llc. I wanted to concentrate on my other business so I went from being a Managing Member to a Member, let my partner run everything as the Managing Member and they get to keep all of the income until the business sells. The business is the Llc, the land it sits on is owned by both of us as a separate entity. Can I charge the Managing Member a lease for the use of my 50% of the land? Currently there is not lease agreement in place.
1 Answer from Attorneys
If the property is owned in common, it is unclear what, if anything, you could charge the other owner for his use of the property. When you acquired the property would have been the time to come to some agreement regarding how it can be used by either of you.
But in any event, you don't own it in common with the LLC. Did you sign some sort of an agreement to the effect that the managing member get to keep all of the income until the company is sold? If not, you should negotiate a written agreement, including a provision for the company's use of the property and how each of you is to be compensated for this use.
If you would like I would be very happy to talk to you, draft, and negotiate such an agreement.
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