Legal Question in Business Law in Texas

Principle in agreement

If I signed a ''principle in agreement '' (not a contract) with a prospective business partner to simply form an LLC as equal owners/operators, but later decided to form the LLC as a single member because of operation duties disputes, does that individual have a right to 50% of the LLC, even after the LLC was created without him/her?


Asked on 9/08/08, 1:47 am

1 Answer from Attorneys
Jeffrey Brashear The Brashear Law Firm, PLLC

Re: Principle in agreement

Based on what you have written and more specifically what terms are contained within the collateral agreement, you may or may not be bound to provide the other party with 50%. Additionally, if the collateral agreement contains certain language, then potentially you filing the LLC as a single member may be in breach of that agreement and as such subject you and/or the LLC to a suit from the other party. If my law firm can assist you with this legal issue or any other legal matter, please contact my legal assistant Jennifer ([email protected]) to arrange for an initial consultation.

Read more
Answered on 9/08/08, 10:56 am


Related Questions & Answers

More Business Law questions and answers in Texas