Legal Question in Business Law in California

Re: LLC partenr's rights

You either resolve it among yourselves, referring to the bylaws for the procedural rules on disputes, or you end up in litigation. Bringing in a 'neutral' mediator is an option if it is worth it to you. Feel free to contact me if serious about doing so.

Re: LLC partenr's rights

What should happen: You should be able to refer to your LLC Operating Agreement and it should have some instructions about how disagreements are handled. If your Operating Agreement does not fulfill this purpose: (1) When people can't agree on the "thing" (in this case the rental rate), they can sometimes agree on a PROCESS for resolving the dispute (e.g. we both get a real estate professional to submit an estimate of a reasonable rental rate and use the average). (2) Now that you know the document has some gaps, this is a great time to review it and make some revisions. Partnership Agreements, Corporate Bylaws and LLC Operating Agreements not only set forth the rules for management of a business entity, they act as relationship insurance to the people involved, who often start the business together because they are family members and friends.