Can a 50/50 member of a LLC Company pay himself more then the other memeber
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Can a 50/50 member of a LLC Company pay himself more then the other memeber
I had to miss some time this summer with my step
dad was fighting cancer. Is it right for my partner to
pay himself 100 of the profits?
Asked on January 30, 2017 under Business Law, Washington
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
Legally, one member of an LLC can be paid more than other members, regardless of ownership interests; for example, a minority owner could be paid more than a majority owner. BUT to do so requires the agreement or consent of a majority of the ownership: i.e. a majority of the ownership must agree to the payment or compensation scheme. In a 50-50 LLC, neither member has a majority ownership; both members would have to agree or consent to this. If you, as 50% owner, did not, then it was illegal.
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