Is a partner or co-owner stealing from your LLC or company? How can you prove this and put a stop to it? What actions can you take? What impact will this have on the business and ownership interests? There are unfortunately many ways in which a business partner, member, shareholder or co-owner in a company can skim money or assets and take advantage of other owners in the business. The Watkins Firm will help you to put a stop to it.
One primary strategy is the commingling of funds and assets. If a partner or co-owner is using company funds to pay for a vehicle that is titled in their personal name, or to pay credit cards or other personal debt they are, in effect, stealing from your LLC or company. They are also risking the integrity of the corporate veil that protects you and other members or shareholders from being held personally liable for business debts and liabilities.
If you are concerned about a partner or co-owner stealing from your LLC or company you can’t simply accuse them of theft. There are strategies we can help you to deploy that will identify theft, document it and provide the evidence necessary to take action. We will help you to organize and evaluate bank statements, company books and all financial activities associated with the partner or owner in question. We will manage the process of organizing evidence and then actually confront the behavior, saving you from the uncomfortable and potentially damaging task of confronting theft. Co-owners and partners who are stealing from your LLC or company are often family members or close friends. The relationships are delicate, and you have decisions to make about how the process will be handled, and whether or not criminal charges are in order.
There is also the matter of their ownership interest. What becomes of this? How is it valued, and what actions can you take to move them out of the company? These are delicate matters and we invite you to contact the Watkins Firm or call for a free consultation at 858-535-1511. In some cases these behaviors develop from a “run-and-gun” style of management and may not be nefarious or based upon criminal intention. They are still a risk to the viability of the company and your own personal liability, and we can help you to put a stop to it.