Business owners often start with a shared goal, but disagreements can develop over money, control, work responsibilities, or the future of the company. One owner may believe another is misusing business funds, withholding financial information, making decisions without approval, or failing to contribute what was promised. Other disputes arise when an owner wants to leave but the owners cannot agree on a buyout or whether the business should continue.
These disputes can be personal as well as financial, especially when the owners are longtime colleagues, friends, or family members. The right approach depends on how the business is organized, the agreements between its owners, and what they want to accomplish—whether that means protecting the business, resolving a disagreement, or separating their interests.
Key takeaways
- Disagreements between business owners can develop over money, control, work responsibilities, or the future of the company.
- The right approach depends on how the business is organized, the agreements between its owners, and what they want to accomplish.
- The goal may be protecting the business, resolving a disagreement, or separating the owners’ interests.
Common Types of Business Ownership Disputes
Partnership Disputes
Partners may disagree over how profits are shared, who makes decisions, whether each partner is doing their part, or how business money is being used. Disputes can also arise when a partner wants to leave or the partners can no longer work together.
Shareholder Disputes
Shareholders are owners of a corporation. Their disputes often involve voting rights, control of the company, access to financial records, payments to owners, or claims that those in control are treating other shareholders unfairly.
LLC Member Disputes
Members are owners of a limited liability company, or LLC. Disputes may concern management decisions, ownership percentages, company spending, access to records, or rights under the operating agreement—the agreement that sets out how the LLC is run.
Business Divorce & Dissolution
A business divorce means separating the interests of owners who no longer want to remain in business together. It may involve a buyout, sale, or another agreed separation. If the business must close, dissolution and winding up involve ending its operations, addressing debts, and dividing any remaining assets.
Which kind of ownership dispute is this?
The kind of dispute depends on how the business is organized. Partners, shareholders of a corporation, and members of a limited liability company each have their own kinds of disputes, and a business divorce separates the interests of owners who no longer want to remain in business together.
| Type of dispute | Who the owners are | What it is often about | Page on the site |
| Partnership disputes | Partners | How profits are shared, who makes decisions, whether each partner is doing their part, how business money is being used, or a partner who wants to leave | Partnership Dispute Attorney |
| Shareholder disputes | Owners of a corporation | Voting rights, control of the company, access to financial records, payments to owners, or claims that those in control are treating other shareholders unfairly | Shareholder Dispute Attorney |
| LLC member disputes | Owners of a limited liability company | Management decisions, ownership percentages, company spending, access to records, or rights under the operating agreement | LLC Member Dispute Attorney |
| Business divorce and dissolution | Owners who no longer want to remain in business together | A buyout, sale, or another agreed separation; if the business must close, ending its operations, addressing debts, and dividing any remaining assets | Business Dissolution in Washington, DC |
Where does Waxman Litigation handle business ownership disputes?
Waxman Litigation handles business ownership disputes for owners and companies in Washington, DC, Maryland, Virginia, and New York from its office in Chevy Chase, Maryland.
| Jurisdiction | Is Seth B. Waxman admitted? | Trial courts |
| Washington, DC | Yes | D.C. Superior Court and the US District Court for the District of Columbia |
| Maryland | Yes | State and federal courts in Maryland. |
| New York | Yes | State and federal courts in New York. The firm has no New York office and handles New York matters from Chevy Chase. |
| Virginia | No | General information only. The firm appears in Virginia matters on pro hac vice admission. |
Frequently asked questions
What causes disputes between business owners?
What happens when an owner wants to leave the business?
More in Business Litigation
Talk to a Business Litigation Attorney
If you are facing a dispute with another business owner, contact Waxman Litigation to discuss your options for protecting your interests and moving forward.
Waxman Litigation · 5425 Wisconsin Ave Ste 600 · Chevy Chase, MD 20815 · (301) 901-3109 · Contact the firm
About the author
Seth B. Waxman is the founder of Waxman Litigation PLLC, a business litigation firm based in Chevy Chase, Maryland that handles business litigation disputes, white-collar defense, internal investigations and court-appointed receiverships.
Before founding the firm, Seth spent decades at international law firms in Washington, DC and New York, as well as 13 years as an Assistant United States Attorney in the U.S. Attorney’s Office for the District of Columbia. He is admitted to practice in the District of Columbia, Maryland and New York, and has served as a court-appointed receiver. He earned his J.D. from the University of Virginia School of Law. Read his full biography and experience.
This page provides general information only and is not legal advice. Reading it does not create an attorney-client relationship.