I invested in my friend's company but now I want out and they say I can't get my investment back. Is that true?
Hello, I invested and bought 2 shares in my friend's company and became a partner in a mortgage loan company. I was supposed to get certified as a loan officer and start processing loans but due to my full-time job, I don't have the time. Therefore I want out and I want my initial investment back. There are no overhead but taxes that they have to pay on the loans they have processed. With me not processing loans, I don't see the problem with me getting my initial payment back. They say there is no profit for me to get paid anything on and I actually owe money.
I would begin by reviewing the partnership agreement, the operating agreement and the articles of organization that you should have signed in order to become a vested partner. Each of those should have a legally binding exit clause.
Gather them, find an attorney and investigate.
Meet with a lawyer. You definitely will want a business lawyer involved if you are dissolving the partnership. Dissolution is a complicated procedure, and partners remain liable for the debts of their partnership. Accordingly, you will want a qualified attorney on hand to operate as a sounding board.