Disputes between business owners, shareholders or the members of an LLC distract the owners and managers of the business from the primary focus of the company of itself. Today’s business environment is more challenging, competitive, and demanding that at any time in history. The profitable operation and growth of a company require the entire focus and attention of its owners and managers. When disputes arise between shareholders or members the company can lose focus and momentum, resulting in reduced profits and in some cases business failure.
The Watkins Firm has served San Diego corporations, LLCs and small businesses for decades. We understand the pressures of running a business, and the issues that arise in the relationships or local business professionals. Shareholder disputes and arguments between business owners usually boil down to money. Many business people are surprised to learn that the likelihood of disputes actually increases as a business thrives and the money rolls in. How do you reduce the probability of disputes between shareholders and LLC members, and prevent expensive and distracting business litigation?
The key is the development and continuous update of sound operating agreements and shareholders agreements, as well as corporate bylaws. These critical business documents should be well crafted to anticipate every possible business or personal challenge, while providing specific strategies and contingency plans for handling them should they arise. These agreements specify the roles and responsibilities of each member or shareholder, as well as how income and profit will be handled at each point of your company’s life.
Contact the experienced business counselors and attorneys at the Watkins Firm for a complimentary and substantive consultation at 858-535-1511. We work with clients to create, update, or amend shareholder agreements and operating agreements to ensure smooth business operations, and to reduce the opportunity for and likelihood of expensive and distracting business litigation.