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how to write a "Demand Letter" to a former Employer/Partner who owes money, benefits, tax info & LLC corrections

TexasRecovery Options

I went to work for this guy and his company. I could see an opportunity straight away. I offered him a 50/50 deal. we shook hands and continued on. After 9 months I told him no more. #1 he would not sign papers OA or any other partnership papers while I slaved away!over 50+ hours a week plus investing my own money!!I totaled the family truck because he did not provide the vehicle. I was supposed to be paid 35% of the income generated by the environmental side of the business. I was shorted on that and never paid overtime. He ran a payroll like I was an employee of his other company. H did take taxes out for a while...But then started paying me through Venmo. I still have not received any tax info for my personal filing 2019... He also refuses to take my name off of the LLC that shows me as a managing member! I have a list of calculations for the amounts I feel I am owed. The 35% is based on average prices for services rendered. The total is over 10,000$ Although I feel righteous I do not want the hassles of a long court drama. Therefore I would be willing to settle out of court or in small claims for 10,000$

1 reply

Mar 11, 2020
Sending a strong demand letter usually means identifying potential legal claims, threatening to take action, setting a deadline for when those actions will be undertaken, and may also include a settlement offer. For an in-depth look at how to write an effective demand letter, this article is a great resource: Construction Demand Letters – How To Write One That Gets You Paid. Note, though, that when offering a settlement - it's probably worthwhile to tally up the actual costs (or at least approximate costs) to show why the settlement is generous, agreeable, etc. That should help to convince the recipient that it's a good deal, especially when they'll be able to avoid fighting through legal claims at the same time. Further, letting them know you have documentation supporting your allegations and claims - and potentially even including copies of some of that with the demand letter - might be helpful, too. Finally, yet another tool that can help to force payment could be to draw up a copy of the necessary paperwork to bring forward a suit or small claims suit and present that to the recipient before actually filing the claim. That'd be just one more piece of documentation to show them that you're serious and willing to do what it takes to get paid.
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