Business Partner & LLC Member Disputes

Disputes among partners, LLC members, and shareholders can threaten the business itself. As a business partner dispute lawyer for owners of closely held Illinois companies, Allison Cho Law represents LLC members, shareholders, and partners in Chicago and the North Shore in conflicts over control, money, information, and exit.

The governing documents come first. An operating agreement or shareholder agreement often decides who manages the company, how deadlock is broken, what triggers a buyout, and how a departing owner is paid. Where the documents are silent, the Illinois Limited Liability Company Act and Business Corporation Act fill the gaps, and they give owners rights that a controlling partner cannot simply ignore, including access to the company’s books and records. An owner who has been locked out of the accounts usually starts there.

Money is the most common flashpoint. When the partner who runs the business pays himself, a family member, or a related company more than the agreements allow, the question becomes whether the decision breached the duty of loyalty and whether the claim belongs to the owner individually or to the company. That distinction decides who can sue and where the recovery goes. A case like a partner who hired his son at twice the market salary turns on authority, disclosure, and fairness.

Some disputes end with one owner leaving. Leaving an LLC does not by itself entitle a member to be bought out, but deadlock, oppression, or misconduct can support a court-ordered buyout or dissolution, and how a partner exits affects the price. If a business partnership is breaking down, schedule a consultation before walking away, moving money, or signing a separation agreement.