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    3 Replies Latest reply on Jul 30, 2010 10:45 PM by tiredofit

    Paying Partners of an LLC has gotten out of Control.

    tiredofit Newbie
      We have been in business as a Printing & Design Group for over the past 15 years. The Company is a Partnership and LLC. When cash flow has been hard I have stepped up to reinforce the cash flow with my own personal credit and money. Now all of my credit has been used up along with all my savings. We are paid as draws but it always seems to me that I get the short end of the deal. We just had our taxes done and the books show that my partner has pulled $6,000 more than me but does not need to pay taxes on it only the profit that was $37,000.00 spilt in half, it comes to $18,500.00. He pulled out as draws $31000.00 where I only pulled $25,000.00. We only have to pay taxes on the profit.

      Even though we are a 50/50 partnership he comes out better in the a lot of things. He refuses to pay back my cash loans and the loss in draws due to the fact that I have been paying the vendors. We have tried to get a repayment schedule going but he always says why did you do it; I never asked you to. Well, I did it because he turned the vendors on me and said that I would pay them. They came after me with a vengeance, and so I could have peace of mind of no more collection calls, I paid them. I do a lot more for the business than he does: I'm the accountant, Sales Rep., Delivery Driver, Purchasing Agent, Bindery Operator, and social director. (I have to use my own money for many chamber memberships and luncheons etc. He is the designer and Sales Rep. When his child was young the company furnished her with health insurance.

      In 2008 I adopted my nephew who is severally mentally disabled due to drugs and physical abuse. I have to use state insurance because the company can't afford to pay his. My main question is how do approach him to correct the payment structure that is going on and make it fair for all. NOTE In the past when I have approached him with this situation he becomes very defensive and blames me. I have tried attorney's that seem not to be able to offer that right solutions. I even tried to sell my half of the business once and he talked me out of that. Also since we have started the business he has traded over 85,000.00 for him and his family where I don't believe in trading because it never works.

      All I can get from him is to work harder and it will work out. I NEED ADVISE ASAP SINCE I AM RUNNING OUT OF FUNDS.