How do I get paid for work done for my husband and his business partner?

Question Details:

I did the accounting, business plan for my spouse and a friend-partner's LLC company.  If I had no written contract and was not a member of this LLC. The LLC was dissolved in April. 01/10, I sent a bill to both partners for my services which totaled to 111 hours @ 45/hour. I did the tax returns, financial statements and analysis, held financial meetings, prepared 52-page business plan, operating agreement among others. The other biz partner told me that I should be compensated for my services but he refused to pay since there's no contract. Hubby paid me for his 1/2 share. Can I sue the partner?

Asked 6/7/2010 under Business | 337 View(s) | More Legal Topics

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Business Law Answers

Did you have any agreement, including a verbal one, outlining what you would be paid or what you would charge? If you had an agreement, it's enforceable; if you did not agree in advance that you would be paid a certain amount, then under the circumstances, it would not be unreasonable for the LLC to believe that since you were a spouse of an owner, you were helping out for free. The key issue then is what was agreed before you began working.

Note however that if you worked for the LLC, neither owner is personally responsible--it is the LLC that needs to pay you, and the LLC which could be sued. LLCs insulate their owners from personal obligations or liabilities, except when the owners voluntarily assume or guarantee debts or obligations. Only if you did the work for the owners personally (e.g. helped to do their own taxes) would they be personally liable. That means that with a dissolved LLC, you may not have any legal recourse to be paid, unless the other owner choose voluntarily to pay you, or unless some successor in interest to the LLC can be found responsible for the debt.

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