Resolving Partnership Disputes
Resolving partnership disputes is often contentious and expensive. Sometimes disputes among limited liability company members arise which result in one or more of the LLC members wanting to exit the LLC. If a member wants to exit the LLC by selling his interest but does not have a ready buyer of his membership interest, the LLC operating agreement may provide that the exiting member will assign his interest to the current members. Therefore, a value must be placed upon this membership interest before it is assigned.
What if the exiting member and the remaining members do not agree on a value? First, carefully review your LLC operating agreement for provisions regarding the assignment and valuation of membership interests. The operating agreement often provides that a business valuation expert will appraise the value of the member’s interest. In addition, hire a corporate lawyer or business lawyer for advice. Furthermore, each LLC member should retain their own lawyer to advise them regarding the LLC’s operating agreement.
Chicago CPA and small business lawyer Brian J. Thompson can reach an affordable solution and resolve you partnership dispute via negotiated or litigated settlement. Brian@BrianThompsonLaw.com