Lori
06-11-2012, 08:23 PM
Here's the situation...
My father and I own an s-corp together. It's a yarn shop. We bought it 3 1/2 years ago. It was dying a slow, painful death, but we felt I could bring it back. Since that time, I've devoted 100% of the work to it. He's cooked a turkey for a couple of events. THAT'S ALL. He's done NOTHING else. By the way, he's an active owner and we both own 50% of the shares. He loaned me the money for my half. He also invested in the store to get things going, but not nearly enough. He's considered that a loan. My shares are to be paid back through dividends, when they start happening. I've not taken a paycheck in 6 months, which I know will cause problems if we were to start taking dividends.
My father is broke. He has run himself out of money and is turning this into my problem. He's decided to sell some of his shares to complete strangers. Apparently they'll be passive partners. However, they have no interest in knitting or yarn. An accountant friend has suggested they may be doing it for a tax shelter to hide some money and that I should get out if they're brought in.
My father has turned this into an all-out battle. He's making ridiculous demands at a time when he knows I can't do it. He's completely aware that one of our best instructors just left and may be taking her students with her, we're on Main Street and it's completely torn up for another 5-6 months, AND I'm supposed to leave for the NG on Saturday.
He's made threats, personal attacks, and demands for information. He demanded copies of tax returns, but insisted I pay for them or I "won't be a happy girl." I made them today. Tonight we received another email stating that he will "require" tax returns and the books by "this Wednesday, 6/11/12." By the way, today is the 11th. He knows I don't have time to do this.
As an active partner with the same amount of stock as I, does he have the right to make such demands? If so, does he have to give me a reasonable amount of time in which to produce what he wants?
Most importantly, do I have the right to stop working for the shop? I'm done being treated this way. He's destroyed me...
Please, please help me.
My father and I own an s-corp together. It's a yarn shop. We bought it 3 1/2 years ago. It was dying a slow, painful death, but we felt I could bring it back. Since that time, I've devoted 100% of the work to it. He's cooked a turkey for a couple of events. THAT'S ALL. He's done NOTHING else. By the way, he's an active owner and we both own 50% of the shares. He loaned me the money for my half. He also invested in the store to get things going, but not nearly enough. He's considered that a loan. My shares are to be paid back through dividends, when they start happening. I've not taken a paycheck in 6 months, which I know will cause problems if we were to start taking dividends.
My father is broke. He has run himself out of money and is turning this into my problem. He's decided to sell some of his shares to complete strangers. Apparently they'll be passive partners. However, they have no interest in knitting or yarn. An accountant friend has suggested they may be doing it for a tax shelter to hide some money and that I should get out if they're brought in.
My father has turned this into an all-out battle. He's making ridiculous demands at a time when he knows I can't do it. He's completely aware that one of our best instructors just left and may be taking her students with her, we're on Main Street and it's completely torn up for another 5-6 months, AND I'm supposed to leave for the NG on Saturday.
He's made threats, personal attacks, and demands for information. He demanded copies of tax returns, but insisted I pay for them or I "won't be a happy girl." I made them today. Tonight we received another email stating that he will "require" tax returns and the books by "this Wednesday, 6/11/12." By the way, today is the 11th. He knows I don't have time to do this.
As an active partner with the same amount of stock as I, does he have the right to make such demands? If so, does he have to give me a reasonable amount of time in which to produce what he wants?
Most importantly, do I have the right to stop working for the shop? I'm done being treated this way. He's destroyed me...
Please, please help me.