Corporate structures, such as Limited Liability Companies (“LLCs”),
Partnerships, for-profit or non-profit corporations, are an effective way
for people and businesses to come together to create and run a new or
additional business. Regardless of whether the business entity formed is
an LLC, a Partnership, or some other business structure, corporate entities
are creatures of the law. Idaho law governs how the legal entity is formed, structured, operates, and winds down when its members are ready to stop conducting business. The law also governs the rights and duties of the members of the entity. Members of corporate entities owe each other and the entity certain duties of trust and honesty. Members’ rights include access to entity documents and finances, voting rights, rights of removal of the managing members, and rights to hold members liable for losses to the entity or to its members as a result of mismanagement or fraud.
Jones & Swartz PLLC has helped many clients successfully understand and enforce their rights as a member of a corporate entity. Our Boise attorneys have also successfully helped clients defend against unenforceable claims of rights or liabilities made by the entity or other members.
The civil litigation attorneys at Jones & Swartz PLLC have helped clients regain control of their corporate entity being unlawfully hijacked by other members. We have also helped clients enforce their right of access to entity documents and financial records that were being wrongfully withheld from them. Our Boise attorneys have helped clients avoid liability on transactions undertaken by other members without authority to act on behalf of the entity. We have also helped members collect entity money and property that was wrongfully taken by other members for unauthorized use.
Business entities might seem like figments of imagination, but the rights and duties governing the entity and its members’ rights and obligations are very real. If you are a member of a corporate entity who suspects mismanagement or who is being denied answers to questions about entity operations, call any of the civil litigation attorneys at Jones & Swartz PLLC today. Jones & Swartz PLLC can tell you what your rights as a member are, and we can help you enforce them too. Jones & Swartz PLLC can also tell you what your obligations to the entity or other members might be, and whether the law requires that you perform those obligations.
Also, if you are not yet a member of an Idaho business entity, but are considering becoming a member or manager, it is very important that you have a full understanding of your rights and obligations BEFORE you sign the operating agreement. Contact Jones & Swartz PLLC today in order to obtain a comprehensive analysis of the proposed terms that will govern your role as a member or manager of the Idaho LLC, Partnership or other business entity.