Legal Question in Business Law in Minnesota

I am in an LLC with my wife and her sister. In order to secure a loan for the business we had to use our houses as collaterals. Our house (my wife and myself's) and my sister's in law's house which she owns with her husband. The 3 of us (myself, my wife and her sister) have been making labor contributions for 2 years towards our business project. My sister in law's husband has not made any labor contribution at all. As far as I am concerned the profits/losses should be shared just by the 3 of us. My sister in law says that her husband should be getting a percentage because he signed on the loan. I only see him as guarantor on the loan, nothing else. What do you think? Thanks!

Asked on 4/04/13, 12:59 pm

David Anderson Anderson Business Law LLC

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If he is not a Member of LLC he is prohibited frim receiving distributions

Do you have a Member Control Agreement?

Answered on 4/04/13, 3:56 pm

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