Legal Question in Business Law in Ohio
A Firewood splitting buisness was started between 3 friends. 2 put up almost 10k cash for wood splitter while 1 had used his farm and tax id towards pruchase and tax exemption. LLC formed in one of the guys wifes name who put up half of the cash. No written contracts nor written aggreements were ever made. Business folded 8 months later. My question is does the person who used his tax id number for tax exemption for machine have any legal right to it? or does all legal rights belong to those who financed it?
1 Answer from Attorneys
The question assumes that ownership of the machine is with the owners of the LLC. The facts provided do not establish who owns the machine.
Under Ohio law, an LLC is a person, separate from its owners (i.e. members). As such, the LLC can own property, loan money, borrow money, sue, and be sued. If the LLC owns the machine, the members can cease operations, dissolve the LLC, and liquidate the assets to pay the company debts, with the remainder going to the owners.
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