A partner commingling funds and assets could be a signal that they are attempting to hire theft. These actions are also a threat to the corporate veil of your LLC or corporation, and could actually put the company itself at risk.
What is commingling? Commingling is simply using personal funds or assets for business purposes, or using company funds or assets for personal reasons. A common example is making a car payment for a vehicle titled in the partner’s name (personally) with a corporate credit card. The argument is that the vehicle is primarily used for business purposes, but the law may not agree with you and this simple action will allow creditors to pierce the corporate veil and hold you and your partner personally liable for business debts.
What should you do if you suspect that your partner is using commingling tactics to take more money out of the company than they should? It is not prudent to confront a partner, co-owner or another member of your LLC and accuse them of theft. The experienced corporate attorneys at the Watkins Firm can help you to discern what is actually happening and put a stop to commingling and any potential theft-related activities. We can help you to develop controls, and investigate past actions and behaviors to identify theft. When we have genuine evidence, our attorneys can confront your partner, preserving whatever is left of the business and personal relationships between you.
If you are concerned about a partner commingling funds and assets or are worried that a co-owner might be involved in theft from the company we invite you to contact us or call today for a free and substantive consultation at 858-535-1511. We will provide a detailed strategy that will work the challenges you are facing through to a resolution, with a detailed budget before you retain us. Take the concerns off of your shoulders and get your mind re-focused on running your company. We can be a valuable partner to clean up internal operations and activities that may be a threat to you or the life of your company.