What happens during business disputes between members in a San Diego LLC and how do you protect your interests in the company? There are many reasons why co-owners or members in an LLC become involved in a business dispute. We are often asked questions such as:
- What can I do if my LLC votes me out?
- How do you eliminate underperforming members in an LLC?
- How do I get out of an LLC?
- What happens if I disagree with the decisions or division of money in my LLC?
Here in California and in most states the Limited Liability Corporation or LLC gets its “authority” from the state where it was formed. LLCs were originally modeled after a “partnership” which means each owner or “member” has an equal right to control the company and associated decisions. This can be modified if an operating agreement was adopted by your LLC, and all members freely agreed to its parameters for voting and decisions regarding money and the control of the company. You cannot be forced to remain in the LLC (regardless of what the operating agreement states) if you disagree with how the company is being run.
The remedies for dissenting members and remuneration for their interest in the LLC upon their exit can be as quite diverse. This is why it is important to contact a proven law firm with extensive experience in business disputes between members in a San Diego LLC and how to resolve them. The unfortunate reality is most LLCs are formed with downloaded paperwork from “legal” sites or from sample forms found on the internet. As a result the underlying corporate documents and the operating agreement (if there is one) are usually quite vague. Resolving these disputes in a timely and cost-effective manner is usually the goal of our clients, and a guiding principle at the Watkins Firm.
If you are involved in business disputes between members in a San Diego LLC we invite you to review the recommendations of our clients and contact us or call 858-535-1511 for a free consultation. Learn about our unique approach to resolving these disputes and how we can help you to protect your interests.