LLC - Limited Liability Corporations
If your business is an LLC we are here to help you. We have experience in a broad range of LLC-related matters. Contact us today.
LLC Attorney – Limited Liability Company Disputes – Chicago, IL
A Limited Liability Company (“LLC” for short) is a relatively new creation in business law. Prior to 1982 LLCs did not exist in the U.S.; until 1988 they existed only in one state. Today LLCs are among the most popular choice when forming corporate entities because of the unique tax advantages they confer upon their members (the members of an LLC are similar to the owners or partners in a traditional corporation).
Due to their popularity, many LLCs are formed incorrectly, or without completing the required documents necessary to govern the operation of the business or resolve unforeseen disputes. The law governing LLC’s can be complex and esoteric. We are ready to assist you in properly forming your LLC as well as in navigating through any issues that may arise down the road.
When a dispute arises among the members of an LLC, one of the first places to look for guidance is the operating agreement of the business. A properly drafted operating agreement will provide for almost any contingency and will guide the members as to what can and cannot be done in a given situation.
For this reason, it is imperative that your LLC have a well-crafted operating agreement. In some states all that is required for the formation of an LLC is the filing of the articles of organization with the appropriate governmental entities. This has created a situation where it is not uncommon for LLCs to be operating without any operating agreement at all.
Sometimes the founding members of an LLC simply forget to create and file the operating agreement; sometimes they genuinely intend to do so, but life gets in the way and they never get around to having it done. Whatever the reason, the absence of a properly drafted operating agreement can have serious consequences in the event of a dispute between the members of an LLC.
If an LLC has no operating agreement to which the members may look, then there may be relevant state or federal statutes that will step in and control the outcome of a given situation. Additionally, in the event of litigation, the court may look to other similar cases—both within and without the LLC’s home state—to determine what is an equitable course of action to take.
Because of this, it is crucial that you retain a qualified corporate attorney to assist in the event of a dispute. A skilled attorney will be able to help you determine what the likely outcome may be in the event of litigation, and can help save you thousands of dollars by avoiding litigation in the event of a likely unfavorable outcome.
Other matters requiring a lawyer
Dispute resolution is hardly the only area in which a good corporate attorney can be of service to your LLC. Because of the unique nature of an LLC, members of the business may find themselves in the position where they must act in such a manner as to place the interests of the LLC above their own.
A conflict of interest situation can be very challenging to identify and even more challenging to safely navigate. At Gentleman Law we can help you determine whether there is a conflict of interest and, if so, what the best alternatives may be.
Another common issue facing members of an LLC is the matter of honoring their fiduciary duty to the business. Because of the structure of an LLC, members actually have a duty to act according to a certain standard when making decisions as part of their roles within the organization. A skilled corporate lawyer can assist you in determining what each member’s duty to the business is, and what can be done when a given member has failed to act according to the requisite standard of care.
Sometimes the founding members of an LLC decide to part ways. In such an event the remaining members may decide to buy out the interests of the departing member. This transaction is greatly facilitated with the use of a corporate attorney who is experienced in such affairs.
Most LLCs will regularly engage in distributions; this is a process whereby a portion of the income generated by the LLC is distributed to its members. Using a lawyer to assist with this process can ensure that it is conducted fairly and in accordance with the operating agreement.
Finally, if the members of an LLC determine that it is in everyone’s best interests to dissolve the business and wrap up its affairs, the assistance of a corporate attorney is crucial to avoid mishandling of funds and eliminate the possibility of one or more members incurring unnecessary liabilities down the road.
If your business is an LLC we are here to help you. We have experience in a broad range of LLC-related matters and can help make the operation of your business as profitable and simple as possible. Contact us today and let us help you conduct business.
Turn to an experienced Illinois LLC attorney
Gentleman Law has been helping clients with business law and LLC disputes for more than 16 years. Call (312) 741-1039 or contact Gentleman Law online today to discuss your case, free of charge. The office is centrally located in the Loop near Daley Plaza just steps from the Cook County Courthouse and the federal courthouse. Spanish is spoken in the office for your convenience.