What are my obligations to my partner after dissolving our LLC?
I own 80% of my LLC. My associate (20%) put forth an initial investment of $10,000. Since the initial investment, they have put an additional $7,000 into the business. They have been making some questionable accounts in quick books. There is an opening balance equity account for the amount of $14,300 and an account with their name and it is a long term liability - notes payable account for the amount of $17,000. They put forth all-cash investments so the opening balance should have been listed as $10,000 and I believe notes payable should be $7,000.
Our operating agreement is short (joke of a contract) lists that I have first right of refusal and I retain 100% of profits from freelance work (no exit strategy). Most of their investment has been spent on assets and my "salary." There were terms of how they were to be re-payed by the company. Partner ran out of personal money, felt I was personally screwing them and took a large sum of money out of company account as a "loan repayment" (breach of contract) and had a large invoice channeled to their personal account for repaying a personal debt I had to them.
At this point, can I dissolve the LLC and ship them the assets and walk? The assets are not valuable enough to cover their monetary contributions. No money left in the business account.