SDIRA Needs to sue other partner in C-Corp

Nashville, Tennessee
Legal & Legislation
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SDIRA Needs to sue other partner in C-Corp

Mike Gilmore
Member since 2023 · 3 posts · 1 vote

I am seeking referrals for an attorney to help resolve a dispute with a partner in a C-Corp for failing to fulfill fiduciary duties. Our SDIRA is actually the partner, so we need to make sure to not violate any IRS laws. It would be good to have someone familiar with SDIRA's and prohibited transactions. 

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  • Jason Zundel
    Member since 2025 · 111 posts · 123 votes
    1y

    Mike - Fortunately, the vast majority of SDIRA's do have the proper language and provisions allowing you, the beneficiary, to manage and hire the proper professionals.  So long as the attorney isn't related to you and doesn't employ someone related to you, the chances of a prohibited transaction related to the actual representation is quite low.  I would recommend focusing on finding an attorney that specializes in partnership disputes and commercial litigation, though of course make sure that the attorney knows of the wrinkle and represents the SDIRA and not you individually.  My firm does not handle this type of practice, but I often recommend starting with the state bar association and Martindale.com to find quality representation if you're starting from scratch.

    Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

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  • Mike Gilmore
    OP
    Member since 2023 · 3 posts · 1 vote
    10mo

    Hi Jason,

    Thank you very much. Very helpful!

    Mike

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    10mo
    Quote from @Mike Gilmore:

    I am seeking referrals for an attorney to help resolve a dispute with a partner in a C-Corp for failing to fulfill fiduciary duties. Our SDIRA is actually the partner, so we need to make sure to not violate any IRS laws. It would be good to have someone familiar with SDIRA's and prohibited transactions. 


     I have had s SDIRA involved where attorneys were needed and as mentioned prior, as long as the attorney who is representing you is not prohibited, hiring counsel is not a prohibited transaction - no different than hiring one to evict a non-paying tenant. 

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