LLC Disputes
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The limited liability company (LLC) business form is relatively new compared to partnerships and corporations. The Michigan Limited Liability Company 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.
For more than 20 years, Steve has successfully prosecuted and defended against legal actions, and has achieved client objectives through arbitrations and negotiated settlements.
As an experienced lawyer, Steve can gauge when it makes sense to go to court. He knows that a letter or phone call — with proper wording and timing — can be more effective or cost-efficient than suing for damages or injunctive relief. For those cases that must be presented to a judge or jury, he is eminently qualified to assert your interests.
If you have an LLC dispute, you should contact Steve. He can assess the facts of your case and help you determine the best course of action to move forward.
To schedule a discrete and confidential consultation about your matter, email or call Steve at (248) 963-6300.
What is a Limited Liability Company?
The limited liability company (LLC) business form is relatively new compared to partnerships and corporations. The Michigan Limited Liability Act took effect in 1993, 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.

What is the Organizational Structure of an LLC?
State 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.

How do disputes among LLC members commonly arise?
The 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.

Dispute Resolution for Limited Liability Companies
LLCs 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.
Alternative dispute resolution (ADR) 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.
For more than 20 years, Steve has successfully prosecuted and defended against legal actions has achieved client objectives through arbitrations and negotiated settlements.
As an experienced lawyer, Steve can gauge when it makes sense to go to court. He knows that a letter or phone call — with proper wording and timing — can be more effective or cost-efficient than suing for damages or injunctive relief. For those cases that must be presented to a judge or jury, he is eminently qualified to assert your interests.
If you have an LLC dispute, you should contact Steve. He and his team can assess the facts of your case and help you determine the best course of action to move forward.
To schedule a discrete and confidential consultation about your matter, email or call Steve at (248) 963-6300.