A limited liability company (LLC) is a popular business structure that can provide a number of benefits. But while this type of formation offers tax advantages, provides flexibility in management, and is easy to set up, it is not uncommon for disputes to arise among members of an LLC. Whether they occur because of finances, conflicting personalities, or market conditions, an LLC dispute can disrupt business operations and harm a company’s bottom line. In such cases, it’s important to have a skillful business attorney by your side who can assist you with resolving the issue efficiently and effectively.
Litico Law Group represents LLC members and managers for a wide array of LLC disputes. Our attorneys work closely with clients across a broad spectrum of industries to help them protect their businesses and preserve their profit margins. Offering reliable representation and dedicated advocacy, we provide insightful counsel and strategic advice to help ensure your business thrives.
Limited liability company managing members owe a fiduciary duty to the other members — and the company. When LLC members cannot agree on how the business should be operated, or an LLC member disregards their obligations to the business, disputes can occur. Since an LLC dispute can be a serious matter that affects the future of a company, it’s vital to ensure these issues are handled swiftly to prevent any obstacles that could distract from achieving the LLC’s objectives.
At Litico Law Group, we assist LLC members and managers with a wide variety of LLC disputes, including those involving the following:
Litigation can be a lengthy, stressful, and time-consuming process. In many situations, mediation or arbitration can offer a viable alternative dispute resolution method to settle conflicts between members without incurring the time or expense that comes with litigation. These methods can also prevent further disruption of business operations — and help resolve conflicts amicably, which is crucial when owners wish to continue running the business together. The attorneys at Litico Law Group are adept at identifying the most efficient and cost-effective way to resolve an LLC dispute, based on the specific facts and circumstances of your case.
When faced with a dispute, limited liability company members have a variety of legal options to protect their interests. For instance, minority members can file a petition for judicial dissolution if oppressive conduct has occurred. Judicial dissolution may be ordered in situations where the company’s affairs are being conducted in a manner that is prejudicial to the minority members. Based on the circumstances, specific performance or injunctive relief may be ordered in cases involving a breach of contract. Other situations may warrant a buyout or an award of monetary damages.
The attorneys at Litico Law Group know how to evaluate an LLC dispute to determine the best course of action in order to obtain a satisfactory outcome. Whenever possible, we strive to assist LLC members with resolving conflicts so that they can continue to work together in a productive manner — without resorting to dissolution. Our legal team will thoroughly assess your case and work with you to ensure your goals are met.
It’s essential for owners to take proactive measures when forming a business to mitigate any conflicts that could later arise. Critically, limited liability company disputes can be avoided in many instances by having a well-written operating agreement in place that sets forth the rights, responsibilities, and voting requirements of the members. An operating agreement should also specify how decisions are made, who will manage the company, how the company will be dissolved, and how profits and losses are divided. If this document is not clear or complete, conflicts can arise regarding how the business operations are carried out.
LLC members and managers should not rely on boilerplate documents when it comes to safeguarding their business. If there is no operating agreement in place, or it fails to address certain issues, a court would look to applicable state law to determine the outcome of the conflict. At Litico Law Group, our attorneys have vast experience drafting comprehensive LLC operating agreements that can save a company cost and time, protect each member’s limited liability, and minimize the potential for litigation.
If a limited liability company dispute threatens to interrupt your company’s operations, an experienced business attorney can help safeguard your legal and financial interests. Located in Rolling Meadows, Litico Law Group serves the legal needs of LLCS and business owners throughout Illinois. No matter how complicated your legal matter might be, we are committed to helping you achieve positive results. We welcome you to schedule a consultation, contact us online or give us a call at 847-307-5942 to learn how we can assist you.