The limited liability company (LLC) business form is relatively new compared to partnerships and corporations. The Illinois Limited Liability Act took effect in 1994, and other states enacted similar laws around the same time. LLCs offer certain advantages for business owners who want more flexibility than a corporation in how they organize and govern their businesses, but who want other advantages offered by corporations. LLCs also offer some of the advantages of partnership law. When disputes arise among owners of LLCs, known as “members,” different laws and obligations may come into play than they do in disputes between shareholders or partners. A business and commercial litigation attorney with knowledge of corporate and LLC law can assist members in disputes with their fellow members. The Chicago limited liability company dispute lawyers at our firm are ready to protect your interests.
Limited Liability CompaniesState law governs the organization and management of LLCs. Members may run the business themselves, or they may appoint “managers” to handle the business operations. Managers are similar to a corporate board of directors, as are members who act as member-managers. The Internal Revenue Service allows LLCs to choose whether they will report and pay taxes in the same manner as a partnership, or as a corporation. LLCs generally have fewer restrictions on issuance or transfer or ownership, although they generally have to follow state and federal securities laws if they solicit investors.
Disputes Among Members of Limited Liability CompaniesThe law of LLC governance is still developing, as the LLC has only existed as a distinct business form for about twenty years. Corporate law often serves as a guide in determining the legal rights of LLC members in a dispute. Members have a fiduciary duty to the company, and have many of the same rights and remedies available as corporate shareholders do in the event of a breach of fiduciary duty by another member. Other disputes between LLC members may include disputes over employment or management, business operations, real estate or other assets, withdrawal of a member, or purchase of a member’s equity interest in the event of the member’s death or divorce. Our limited liability company dispute attorneys can guide Chicago clients through any of these situations.
Dispute Resolution for Limited Liability CompaniesLLCs tend to have a small number of members, making them similar to closely-held corporations. Disputes between members can potentially threaten the company’s day-to-day operations, making efficient resolution of disputes critical. Our team of attorneys has extensive experience in alternative dispute resolution (ADR), which allows parties to an LLC dispute to find a solution outside of the public eye. ADR methods like mediation and arbitration can be much faster, much less expensive, and much more efficient than litigation.
Litigation Between Members of Limited Liability CompaniesWhen a dispute between members of an LLC must proceed to court, we can guide members through the litigation process. LLC law is still an evolving field, and we are committed to keeping abreast of the latest laws and court decisions affecting LLC members’ rights.
The Chicago limited liability company dispute attorneys of Lubin Austermuehle, P.C. have offices in Chicago and Elmhurst, Illinois. We represent businesses in the greater Chicago area and throughout Illinois, Indiana and Wisconsin. For over twenty-five years, we have assisted business owners in disputes with their fellow partners, shareholders, or members. Contact us today via email, at 630-333-0333 to schedule a consultation with a limited liability company dispute lawyer in the Chicago area.