Quitting was probably reasonable -- especially if you're truly responsible for a large chunk of the code & you weren't included as a founder. If you still have

Quitting was probably reasonable -- especially if you're truly responsible for a large chunk of the code & you weren't included as a founder. If you still have equity, you're not done yet. Depending upon the operating agreement, you could get a K1 in the mail with tax liability. The operating agreement should limit self-pay and should have the company keep in escrow expected pass-through taxes of the members. Next time, you should have had a "reasonable" salary in addition to equity, logged as deferred compensation payable through a percentage of revenue. This way, if they make money, you get paid regardless of equity. Next time, if deferred compensation and/or final equity isn't set, you should keep the intellectual property rights till there's some way to evaluate relative contributions. Hope this helps.