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Disputes Between Members of an LLC

Disputes Between Member Owners of an LLC (Limited Liability Company) in San Diego

California has specific laws which govern the actions of those who own an LLC known as “members.” There are many reasons why there may be disputes between members of an LLC. When disputes between business owners arise it is important to seek the advice and counsel of the experienced and skilled commercial and business litigation team at Allen Barron.

Preventing Disputes Between Members of an LLC Before They Arise

The first step in managing disputes between members of an LLC is to prevent them before they ever happen. The LLC Operating Agreement is one of the most important documents an LLC owner member may ever sign. Unfortunately, many LLCs are begun with forms which have been downloaded from some legal website and the parties think they can simply fill in the blanks. California law was recently overhauled to govern every act of an LLC while more clearly defining the relationship of the members and their legal and fiduciary duties to one another. Crafting and executing a strong LLC Operating Agreement will place appropriate controls and agreements in place to prevent disputes and guide the LLC through all aspects of formation, growth, acquisition and ultimately its sale or dissolution.


Under California law certain events may result in a members dissociation from the LLC and change the status of the member’s ownership interest to that of a “transferee.” The transferee may retain the economic rights and benefits of their ownership position but loses the right to participate in management decisions or voting. It may be possible in disputes between members of an LLC for a member in an LLC to dissociate often referred to as a “withdrawal” at any time, rightfully or wrongfully, by withdrawing as a member by express will and giving notice to the LLC. 

Resolving Disputes Between Members of an LLC

Unlike business to business disputes there is often a lot more at stake when resolving disputes between members of an LLC such as the nature of the underlying relationships. LLCs often involve close family relationships and friendships which extend into the social arena. Allen Barron’s commercial and business litigation team understand the sensitivity regarding these relationship issues and works to resolve disputes quickly and efficiently.

Disputes between members in an LLC are most often resolved through negotiation between the parties and their legal representatives. Our proven trial attorneys are skilled negotiators who work to find common ground, identify potential solutions and negotiate a resolution which reflects our client’s desired outcome for the dispute. When negotiations cannot successfully resolve every aspect of the dispute mediation can be an effective alternative to arbitration or taking the matter before the court.

Contact LLC Member Dispute Resolution Attorneys

If you are involved in disputes between members of an LLC we invite you to review the recommendations of our clients and contact us or call today at 866-631-3470 for a free consultation. Learn how Allen Barron’s attorneys can help to resolve a dispute or lawsuit in a timely manner at a reasonable cost.



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Contact Us To Learn More About Allen Barron's Services

For more information or to discuss your tax, legal and accounting needs contact Allen Barron or call 866-631-3470 for a free and confidential initial consultation. Learn about the importance of integrated business strategy and coordination across legal, tax and accounting systems.

Offices of Allen Barron, Inc.

Main Office

16745 West Bernardo Drive, Suite 260
San Diego, CA 92127
Phone: 858-304-0947
Phone: 866-631-3470
Fax: 858-376-1410

San Diego Office

5720 Oberlin Drive
San Diego, CA 92121
Phone: 866-631-3470
Fax: 760-741-1410

Las Vegas Office

333 South Sixth Street, Suite 230
Las Vegas, NV 89101
Phone: 702-749-4430
Fax: 702-933-1748

San Diego Office

750 B Street, Suite 2610
San Diego, CA 92101
Phone: 619-702-8356
Fax: 619-923-8356

San Francisco Office

300 Montgomery Street, Suite 410
San Francisco, CA 94101
Phone: 415-481-0475
Fax: 415-762-1539

Phoenix Office

40 North Central Avenue
Phoenix, AZ 85004
Phone: 602-903-7018
Fax: 602-357-1655