I opened up a small hvac company in Nevada as a LLC and me as the sole proprietor. My son in law was to be my contractor and do the work. After a big fight he and my daughter took it upon themselves to take me off my business and put it under his name as sole proprietor. They said they went to the secretary of state and took my name off the business license. They said they are allowed to switch my fed id tax # from my name to theres. They did go to my business bank and had my name taken off my business acct and put there names on it as the owner of the business. All this without my permission and without me signing a single paper to switch any of all this. My question is can it be legal to do any of this without me signing anything to do this. Is to legal for the bank to just take me off my acct without my permission. Do i have any recourse against them, the bank or the business license bureau. Thank you
1 Answer from Attorneys
No, it is not lawful to just unilaterally remove a partner from a business. While they can physically take these actions it leaves you with claims. But do you want to sue your daughter and her husband? That might be tempting now but will it still sound like a good idea a year from now? The other issue is the one of damages. The impression I get, although I could be wrong, was that you never really began any business dealings. So there really is no hijacking of the profits here. It appears that they just decided to commandeer the entity. In such a case, what would you sue for? You can't really claim that this cost you money (unless it did of course). If you have lost out of pocket expenses then sure you can sue for that, but you can't sue for say future profits, etc. And regards to specific performance, do you really want a judge to order them to allow you to be a partner? If this is how they operate, you don't really want to be in business with them right? Maybe just keep it more familial and less business related?
If I missed anything or if you need clarification, I suggest that you consult with a lawyer in private and discuss your objectives in more detail. You can start by calling around to several for a free phone consultation, get some insights then pick the best fit to work with.
If you would like to discuss further over a free phone consult, feel free to contact me anytime that is convenient.
Our firm is now referred by the American Bar Association (see under the New York section): http://www.americanbar.org/groups/delivery_legal_services/resources/programs_to_help_those_with_moderate_income.html
DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.
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