Legal Question in Business Law in Texas

Roles of partners in an LLC

Greetings, we are forming an LLC but one of the parties interested (the one who came with the idea) wants to retain 51% of the company and leave the rest to be divided among two other partners. Does ownership of 51% of the company have any controlling capability under an LLC. Does it matter to divide the LLC into percentages for the partners?

What kind of control will the party with the 51% have over the other parties who own 24 and 1/2%?

Thank you!


Asked on 6/08/03, 1:34 am

2 Answers from Attorneys

Re: Roles of partners in an LLC

In the operating agreement you can designate how voting rights are allocated, sharing of profits and how losses will be allocated and more.

Discussing the operating agreement with your attorney will greatly help in long run.

Also always play worst-case scenario:

What if something happens and any one of you needs to get out of the LLC agreement...can you?

What if you have a major or minor disagreement regarding operations...can you be out voted?

What if things are fantastic and you are offered a chance to sell the LLC for millions? Will your operating agreement help or impede you?

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Answered on 6/08/03, 7:49 pm
Peter Bradie Bradie, Bradie & Bradie

Re: Roles of partners in an LLC

It all depends upon how the Operating Agreement is written. If all that's required for management decisions is a simple majority, it's going to be his company and you can share in the profits.

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Answered on 6/08/03, 3:10 pm


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