What Rights Do LLC Members Have in Illinois?

Article written by Illinois Attorney Kevin O’Flaherty

In this article, we answer the question, “what rights do LLC members have in Illinois?” We explain Illinois LLC members’ financial rights, Illinois LLC members’ voting rights, Illinois LLC members’ rights to inspection of records, dissenters rights in Illinois LLCs, and derivative action rights of LLC members.

For more on this, check out our article: Fiduciary Duties of LLC members in Illinois.

Members of an LLC have the following rights with respect to one another:

Illinois LLC members’ financial rights explained

Members obviously have certain financial rights. These rights include the right to share in allocations of the company’s profits and losses and the right to share in distributions of the LLC’s assets during its existence and also when it dissolves and liquidates. The exact nature of these financial rights depends on the operating agreement, which outlines whether they will be shared equally or based on capital contributions or some other type of criteria. The state of Illinois has default provisions that outline how these financial rights will be allocated, if the operating agreement does not outline these rights.

Illinois LLC members’ voting rights explained

Members of an LLC have the right to vote. Voting rights vary, depending on if members or managers are…