Let me begin by stating the person in the subject title is an entertainment DJ with 17 years experience who lost her regular job with a transportation company in July. Seeing that talent, I asked her why didn't she just go into being a DJ full time? No funds to support this, so seeing what I thought would be a great opportunity for an upstart business with our niche in weddings, I bought DJ equipment (hers was rather old) and hired an attorney in August and launched our LLC.I am the sole registered agent for the LLC because she has bad credit and I am the sole investor. We have no operating agreement as I saw her as competent and very appreciative of the opportunity and we seemed to share basic philosophies not to mention she's the one with the experience and I have none in entertainment. In return for my investment, I agreed to 35% return on each gig.
About me. I have worked in Government contracts for 15 years. I'm a retired navy officer and I have a Masters degree in business. She is a consummate professional in entertainment but has no experience in the mechanics of how a business should operate. She is a perfectionist and she is good at being a DJ. Her personality exudes fun and excitement which is exactly what a DJ should do. She's fun and attractive. But she has a dark side too that she struggles with and that's a food and gambling addiction, but she is going to a 12 step recovery for this. However, she has extreme controls issues and there is a tendency to sabotage herself. One part of our agreement was that she would keep me posted on all events and pricing. Since I knew she was experienced in this area, I didn't see any reason for my oversight to any real extent, but I did tell her that the deal breaker for any of this is if she gambled. For the most part, she is responsible but she is not savvy when it comes to spreadsheets or the break down of income, net profit, costs, etc. She does however have a basic spreadsheet that delineates all costs, all bookings all charges for bookings, etc. She has saved every receipt which I also have copies of.
Because I have a full time job, I was for the most part willing to be mostly a silent partner, and exercise a hands off position with the exception of helping her with bridal shows, coming up with more extensive contract language (I'm a contract specialist) and I created the logo for the company. The problem came last week, when I got a call from the bank where our business account resides. They told me there was suspicious activity and when I questioned her about it, she fessed up and had used the business credit card and charged it for an internet online gambling in the amount of $53.00. I had card cancelled and removed her online access to that account. As you can imagine I have been furious and beside myself. Rather than shut the business down, I told her that no money would pass through her hands and at the time she humbled and agreed. I told her all contractual matters and pricing would from now on go through me. I told her that she needed to do what she was good at: being a DJ and let me handle the business end from here on out. Well, that hasn't happened. The problem is that she makes the contacts, receives the phone calls, meets with the clients, books the events, presents the contracts and she does not include me on any of it. She has set it up that it goes through her and she sends me the event through google calendar or the spreadsheet she has. One booking was a club and she has them mail me the check. That was one time and the last time that has happened. Since then she has accused me of trying to take over everything. Yet, as the sole owner and managing partner, I do absolutely nothing. None of the bookings she has received have called me for contract. Last night she did a wedding and they paid her in cash. I had no control over that situation and did not know how to discuss without her becoming defensive. I asked her to deposit cash in business account and she said she would do it Monday. I asked her to bring me the money and she assured me it was safe and that she would do it Monday. I was frank with her and told her that this wasn't what we agreed to after she relapsed and gambled and her response was that I was trying to take control and that I had no respect for how the job works. I am to the point of taking back equipment (she keeps it at her house and I know she will not give it back without some form of legal force) and dissolving LLC because I am disgusted with trying to gain control of this situation. Is there anyone out her that can help me with some other solution to this?
About me. I have worked in Government contracts for 15 years. I'm a retired navy officer and I have a Masters degree in business. She is a consummate professional in entertainment but has no experience in the mechanics of how a business should operate. She is a perfectionist and she is good at being a DJ. Her personality exudes fun and excitement which is exactly what a DJ should do. She's fun and attractive. But she has a dark side too that she struggles with and that's a food and gambling addiction, but she is going to a 12 step recovery for this. However, she has extreme controls issues and there is a tendency to sabotage herself. One part of our agreement was that she would keep me posted on all events and pricing. Since I knew she was experienced in this area, I didn't see any reason for my oversight to any real extent, but I did tell her that the deal breaker for any of this is if she gambled. For the most part, she is responsible but she is not savvy when it comes to spreadsheets or the break down of income, net profit, costs, etc. She does however have a basic spreadsheet that delineates all costs, all bookings all charges for bookings, etc. She has saved every receipt which I also have copies of.
Because I have a full time job, I was for the most part willing to be mostly a silent partner, and exercise a hands off position with the exception of helping her with bridal shows, coming up with more extensive contract language (I'm a contract specialist) and I created the logo for the company. The problem came last week, when I got a call from the bank where our business account resides. They told me there was suspicious activity and when I questioned her about it, she fessed up and had used the business credit card and charged it for an internet online gambling in the amount of $53.00. I had card cancelled and removed her online access to that account. As you can imagine I have been furious and beside myself. Rather than shut the business down, I told her that no money would pass through her hands and at the time she humbled and agreed. I told her all contractual matters and pricing would from now on go through me. I told her that she needed to do what she was good at: being a DJ and let me handle the business end from here on out. Well, that hasn't happened. The problem is that she makes the contacts, receives the phone calls, meets with the clients, books the events, presents the contracts and she does not include me on any of it. She has set it up that it goes through her and she sends me the event through google calendar or the spreadsheet she has. One booking was a club and she has them mail me the check. That was one time and the last time that has happened. Since then she has accused me of trying to take over everything. Yet, as the sole owner and managing partner, I do absolutely nothing. None of the bookings she has received have called me for contract. Last night she did a wedding and they paid her in cash. I had no control over that situation and did not know how to discuss without her becoming defensive. I asked her to deposit cash in business account and she said she would do it Monday. I asked her to bring me the money and she assured me it was safe and that she would do it Monday. I was frank with her and told her that this wasn't what we agreed to after she relapsed and gambled and her response was that I was trying to take control and that I had no respect for how the job works. I am to the point of taking back equipment (she keeps it at her house and I know she will not give it back without some form of legal force) and dissolving LLC because I am disgusted with trying to gain control of this situation. Is there anyone out her that can help me with some other solution to this?
via Small-Business-Forum.net http://www.small-business-forum.net/managing-your-business/9885-my-business-being-hijacked-controlling-non-business-partner.html
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