I am 1/3rd owner of an S Corporation. I am having issues with my business partner (the 3rd partner is her husband, but he's "supposed" to be a "silent" partner}. If I were to leave the business, would I have any rights to the physical items i donated to the business when we started up? Also, should I ask them to buy me out? Do I have any rights to anything? She had told me previously, that if I wanted to leave, I would only get the amount of money we initially put into our shares.
1 Answer from Attorneys
Unless you had an agreement in place, if you contributed assets to the company the company will usually continue to own those assets. I suppose in some cases it might be so obvious that these were never intended to be company assets, but that requires details we don't have. Of course, you are always free to negotiate all this as you exit the entity.
You are also free to negotiate a buyout based on the fair market value unless you already agreed to something in writing through a shareholder or other similar agreement.
Before you commit to anything, 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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