Post a new topic
    5 Replies Latest reply on Oct 25, 2009 4:39 AM by CorpCons08 this legal???

    zacaboo Newbie

      I am a partner in a small business with one other person. We opened a bank checking account (registered as a LLC) about a year ago, the account has only two signers as we are both 50% owner in the business. The business has the misfortune of falling victim to today's economy, and I must take my losses and move in another direction. After speaking with my partner, we decided to meet and decide which course of action needed to be taken. To my utter surprise; my partner went to our bank and removed my name from our accounts and I am not able to obtain ANY info on said account. IS this legal? It would seem to me that the account would have to be closed and the partnership dissolved. I am 50% owner in this business how can one person remove the other when we have both signed the resolution? Do I have any recourse with this bank, doesn't the Federal Reserve bank have some sort of governing regulations pertaining to this? Any assistance would be greatly appreciated!


      Thank you...
        • Re: this legal???
          bm911tax Adventurer
          My first response to you, HAVE YOU TALKED TO THE BANK about this? I would think it would depend on what type of banking account you signed. Many banks have primary and secondary signers. The primary has all the rights and can add/remove secondary. Many banks have accounts that will not allow one signer to remove another without proper documentation. (board meeting minutes resolution, departure of an officer, etc) So go to the bank and raise this question to them. Let us know how it went.
          • Re: this legal???
            LUCKIEST Guide
            is this legal???

            When you say Legal, Talk to your Lawyer.

            Who prepared your partnership agreement??
            <!--Session data-->
            • Re: this legal???
              NewLookTeam Wayfarer
              Hi, this has nothing to do with your partnership agreement, (as in llc, or s-corp etc...) A couple of questions, is the account name registered under a SSN or EIN. thats probably the determining factor her more than anything... if its under an SSN (ie his, then he probably has propriotorship to act on the account as the primary account name) if its registered under the business EIN (IRS Business Tax ID Number) then you may have recourse based upon your partnership agreement...

              I am going to hazard a guess its registered under his SSN, which is why the bank allowed the change, but banks are also a law unto themselves, soo they could have just made the change..

              I hope this helps...
              • Re: this legal???
                bm911tax was right. The first step should be to contact the bank. I'd hazard a guess you do not have an attorney you can talk to. that would be step two.

                The very best wasy for most people to gain access to the legal system is through an inexpensive Pre-Paid Legal policy (see With such a policy you have access to call and talk with an attorney who specialized in the area of your concern without the huge legal bill that would taditionally follow. They have family plans, self-employed plans, home-based business plans, and corporate plans. Once I learned the value of such a policy, I would not be without one.
                • Re: this legal???
                  CorpCons08 Ranger
                  When you open a bank account as an LLC you complete an LLC Agreement with the bank that names the signatories. If your partner went in, it is possible that he updated the LLC Agreement to show him as the only signatory.